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Rane (Madras) Limited (IN:RML)
:RML
India Market
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Rane (Madras) Limited (RML) AI Stock Analysis

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IN:RML

Rane (Madras) Limited

(RML)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
₹1,157.00
▲(36.56% Upside)
Action:Reiterated
Date:06/30/26
The score is primarily driven by improving financial performance (strong FY2026 revenue and profitability rebound and materially better leverage), offset by weak cash-flow consistency (FCF back to negative in FY2026) and a relatively high P/E with only a modest dividend yield. Technical conviction is limited due to missing indicator data, with elevated beta indicating higher volatility.
Positive Factors
OEM safety-critical products
RML supplies steering and suspension systems that are safety-critical and tied to OEM vehicle programs. These awards tend to be multi-year and recurring, creating higher switching costs and predictable order backlogs that support durable revenue visibility across vehicle cycles.
Negative Factors
Inconsistent free cash flow
Negative and inconsistent free cash flow undermines the company's ability to self-fund capex, working capital and dividends. Reliance on external financing or higher leverage for program investments raises funding risk and limits sustainable cash returns to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
OEM safety-critical products
RML supplies steering and suspension systems that are safety-critical and tied to OEM vehicle programs. These awards tend to be multi-year and recurring, creating higher switching costs and predictable order backlogs that support durable revenue visibility across vehicle cycles.
Read all positive factors

Rane (Madras) Limited (RML) vs. iShares MSCI India ETF (INDA)

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 recovery is evident (FY2026 revenue +19.86% YoY and improved profitability), and leverage metrics have improved (debt-to-equity ~1.0x; ROE ~14.3%). However, cash-flow quality is a key constraint: free cash flow turned negative in FY2026 after being positive in FY2025 and has been inconsistent across prior years, while margins remain relatively thin and volatile.
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
42
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue32.23B38.63B34.06B34.63B23.54B17.42B
Gross Profit11.64B9.17B8.41B6.46B6.87B6.14B
EBITDA2.69B3.40B2.85B456.30M1.88B1.27B
Net Income463.00M1.07B376.50M30.20M300.20M106.60M
Balance Sheet
Total Assets24.11B25.21B22.69B13.69B13.49B12.30B
Cash, Cash Equivalents and Short-Term Investments790.50M881.00M432.70M383.90M284.80M128.50M
Total Debt8.32B7.52B8.13B7.28B6.68B5.85B
Total Liabilities17.31B17.70B15.98B11.13B11.07B10.02B
Stockholders Equity6.80B7.51B6.71B2.56B2.42B2.28B
Cash Flow
Free Cash Flow-697.60M-270.30M637.00M-171.00M-206.80M-1.06B
Operating Cash Flow237.80M1.64B2.48B1.20B876.40M-56.50M
Investing Cash Flow230.30M94.00M-1.53B-1.57B-1.06B-1.24B
Financing Cash Flow-281.40M-1.50B-1.02B-553.60M351.20M1.34B

Rane (Madras) Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price847.25
Price Trends
50DMA
937.06
Positive
100DMA
855.49
Positive
200DMA
826.84
Positive
Market Momentum
MACD
76.59
Negative
RSI
74.28
Negative
STOCH
74.76
Neutral
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 1031.11, below the 50-day MA of 937.06, and above the 200-day MA of 826.84, indicating a bullish trend. The MACD of 76.59 indicates Negative momentum. The RSI at 74.28 is Negative, neither overbought nor oversold. The STOCH value of 74.76 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
₹55.51B24.041.63%15.04%28.14%
72
Outperform
₹41.03B29.742.39%11.39%79.67%
67
Neutral
₹27.38B16.521.63%4.82%5.68%
64
Neutral
₹371.88B39.360.38%26.25%13.79%
64
Neutral
₹20.09B17.240.95%-3.98%9.20%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹33.25B30.721.07%56.14%600.44%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:RML
Rane (Madras) Limited
1,203.15
321.76
36.51%
IN:AUTOAXLES
Automotive Axles Limited
1,811.85
50.33
2.86%
IN:ENDURANCE
Endurance Technologies Ltd.
2,643.80
-8.04
-0.30%
IN:GNA
GNA Axles Ltd
467.90
149.33
46.88%
IN:JAMNAAUTO
Jamna Auto Industries Limited
138.85
47.47
51.95%
IN:NRBBEARING
NRB Bearings Ltd.
423.30
150.44
55.13%

Rane (Madras) Limited Corporate Events

Rane (Madras) Sets Board Meet and Trading Blackout for Q1 Results
Jun 29, 2026
Rane (Madras) Limited has scheduled a board meeting on August 5, 2026 to consider and approve its standalone and consolidated unaudited financial results for the quarter ended June 30, 2026, in line with SEBI listing requirements. The company has ...
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...
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.Date of analysis: Jun 30, 2026