Rane (Madras) Limited (IN:RML)
:RML
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Rane (Madras) Limited
(RML)
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Rating:58Neutral
Price Target:
₹1,166.00
▲(37.62% Upside)
Action:Reiterated
Date:06/20/26
The score is driven by improving financial performance (revenue and profitability recovery with meaningfully lower leverage), partially offset by inconsistent cash generation and a return to negative free cash flow. Technicals are strong but appear overextended, while valuation is only average with a relatively high P/E and low dividend yield.
Positive Factors
OEM safety-critical supplier
RML’s core business supplying safety-critical steering and motion-control parts to OEMs implies recurring, program-level contracts and higher switching costs. That structural OEM exposure supports steady demand over vehicle lifecycles and underpins predictable revenue streams.
Negative Factors
Weak free cash flow
Free cash flow volatility and a return to negative FCF in FY2026 signal inconsistent cash conversion despite earnings recovery. This undermines the company’s ability to self-fund capex and working-capital needs, increasing reliance on external financing during downturns or for growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
OEM safety-critical supplier
RML’s core business supplying safety-critical steering and motion-control parts to OEMs implies recurring, program-level contracts and higher switching costs. That structural OEM exposure supports steady demand over vehicle lifecycles and underpins predictable revenue streams.
Read all positive factors
Rane (Madras) Limited (RML) vs. iShares MSCI India ETF (INDA)
Market Cap
₹30.98B
Dividend Yield1.07%
Average Volume (3M)800.00
Price to Earnings (P/E)25.4
Beta (1Y)1.73
Revenue Growth56.14%
EPS Growth600.44%
CountryIN
Employees1,188
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)18.48
Shares Outstanding27,637,136
10 Day Avg. Volume603
30 Day Avg. Volume800
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)2.28
Price to Sales (P/S)0.44
P/FCF Ratio-63.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rane (Madras) Limited Business Overview & Revenue Model
Company Description
Rane (Madras) Limited (RML) is an Indian automotive components producer that operates in both domestic and international markets. Its diverse product portfolio includes steering gears, steering and suspension linkage products, and high-precision a...
How the Company Makes Money
RML primarily makes money by manufacturing and supplying automotive components to vehicle OEMs under supply contracts, with revenue recognized from the sale of parts and assemblies shipped to customers. Its key revenue stream is OEM (original equi...
Rane (Madras) Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.23B | 38.63B | 34.06B | 34.63B | 23.54B | 17.42B |
| Gross Profit | 11.64B | 9.17B | 8.41B | 6.46B | 6.87B | 6.14B |
| EBITDA | 2.69B | 3.40B | 2.85B | 456.30M | 1.88B | 1.27B |
| Net Income | 463.00M | 1.07B | 376.50M | 30.20M | 300.20M | 106.60M |
Balance Sheet | ||||||
| Total Assets | 24.11B | 25.21B | 22.69B | 13.69B | 13.49B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 790.50M | 881.00M | 432.70M | 383.90M | 284.80M | 128.50M |
| Total Debt | 8.32B | 7.52B | 8.13B | 7.28B | 6.68B | 5.85B |
| Total Liabilities | 17.31B | 17.70B | 15.98B | 11.13B | 11.07B | 10.02B |
| Stockholders Equity | 6.80B | 7.51B | 6.71B | 2.56B | 2.42B | 2.28B |
Cash Flow | ||||||
| Free Cash Flow | -697.60M | -270.30M | 637.00M | -171.00M | -206.80M | -1.06B |
| Operating Cash Flow | 237.80M | 1.64B | 2.48B | 1.20B | 876.40M | -56.50M |
| Investing Cash Flow | 230.30M | 94.00M | -1.53B | -1.57B | -1.06B | -1.24B |
| Financing Cash Flow | -281.40M | -1.50B | -1.02B | -553.60M | 351.20M | 1.34B |
Rane (Madras) Limited Technical Analysis
Positive
847.25
Price Trends
867.76
Positive
820.40
Positive
814.31
Positive
Market Momentum
39.24
Negative
80.11
Negative
93.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RML, the sentiment is Positive. The current price of 847.25 is below the 20-day moving average (MA) of 934.26, below the 50-day MA of 867.76, and above the 200-day MA of 814.31, indicating a bullish trend. The MACD of 39.24 indicates Negative momentum. The RSI at 80.11 is Negative, neither overbought nor oversold. The STOCH value of 93.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RML.
Rane (Madras) Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹52.87B | 22.79 | ― | 1.63% | 15.04% | 28.14% | |
72 Outperform | ₹41.53B | 28.52 | ― | 2.39% | 11.39% | 79.67% | |
67 Neutral | ₹26.98B | 16.42 | ― | 1.63% | 4.82% | 5.68% | |
64 Neutral | ₹368.62B | 38.78 | ― | 0.38% | 26.25% | 13.79% | |
64 Neutral | ₹17.77B | 15.15 | ― | 0.95% | -3.98% | 9.20% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ₹30.98B | 25.38 | ― | 1.07% | 56.14% | 600.44% |
* Consumer Cyclical Sector Average
IN:RML
Rane (Madras) Limited
1,120.90
200.69
21.81%
IN:AUTOAXLES
Automotive Axles Limited
1,785.50
40.06
2.30%
IN:ENDURANCE
Endurance Technologies Ltd.
2,620.60
85.85
3.39%
IN:GNA
GNA Axles Ltd
413.85
97.25
30.72%
IN:JAMNAAUTO
Jamna Auto Industries Limited
132.25
44.83
51.28%
IN:NRBBEARING
NRB Bearings Ltd.
428.50
155.73
57.09%
Rane (Madras) Limited Corporate Events
Rane (Madras) clears FY26 results, declares dividend and revamps board committees
May 6, 2026
Rane (Madras) Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, along with an unmodified auditor’s opinion. The results will be made available on the c...
Rane (Madras) Clears FY26 Results, Proposes Rs.16 Dividend and Revamps Board Committees
May 6, 2026
Rane (Madras) Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, and will publish them on the company’s website. The board also recommended a final divi...
Rane (Madras) Confirms SEBI-Compliant Dematerialisation for March Quarter
Apr 4, 2026
Rane (Madras) Limited has reported that, for the quarter ended March 31, 2026, all securities dematerialised and rematerialised have been duly processed and reported to the stock exchanges in line with Regulation 74(5) of the SEBI (Depositories an...
Rane (Madras) Sets Board Meet for FY26 Results, Closes Trading Window
Mar 30, 2026
Rane (Madras) Limited has scheduled a board meeting on May 6, 2026 to consider and approve its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. This signals the forthcoming release of key financi...
Rane (Madras) Faces Rs.3.12 Crore Tax Demand After Faceless Assessment Order
Mar 28, 2026
Rane (Madras) Limited has disclosed that the National Faceless Assessment Centre of the Income Tax Department has issued an assessment order for AY 2023-24, resulting in a tax demand of Rs.3.12 crore, excluding any potential penalties. The order f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.