Rane (Madras) Limited (RML) AI Stock Analysis

• Market Cap: ₹20.00B
• Dividend Yield: 1.07%
• Average Volume (3M): 800.00
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.54
• Revenue Growth: 54.17%
• EPS Growth: 1117.99%
• Country: IN
• Employees: 1,188
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 11.04
• Shares Outstanding: 27,637,136
• 10 Day Avg. Volume: 603
• 30 Day Avg. Volume: 800
• PEG Ratio: -0.87
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 16.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹749.00 ▼(-11.60% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Rane (Madras) Limited's financial performance is a key strength, with improvements in revenue and profitability. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Strong Revenue Growth

A ~77.7% reported revenue growth signals substantial top-line expansion likely from program wins or higher OEM volumes. Durable revenue momentum supports scale benefits, improves unit economics over time and strengthens bargaining power with customers and suppliers if sustained.

Return to Profitability

Moving from loss to a positive net margin (1.1%) reflects structural improvement in cost control and pricing. A sustained profitable baseline allows reinvestment, builds retained earnings and reduces reliance on external funding, improving long-term operational stability.

Improved Cash Generation

Material improvement in operating cash flow and positive free cash flow provide lasting financial flexibility. This supports capex for capacity, services debt, and funds working capital without heavy external financing, reducing refinancing risk across cycles.

Negative Factors

Elevated Leverage

A debt/equity of 1.21 and sub-30% equity ratio indicate material leverage that constrains strategic flexibility. High debt amplifies downside in demand downturns, increases interest burden and limits capacity to pursue M&A or aggressive capex without raising fresh capital.

Moderate Operating Margins

Relatively low EBIT (4.4%) and EBITDA (8.4%) margins provide limited buffer against raw-material inflation or contract pricing pressure. Sustaining industry-average margins is critical; otherwise low margins restrict reinvestment and weaken competitive resilience long term.

OEM & Input-Cost Exposure

Business is structurally tied to OEM production cycles and raw-material price shifts, with pass-through not always available. This creates recurring volume and margin cyclicality, making cashflows and profitability sensitive to vehicle-cycle downturns and commodity swings.

Rane (Madras) Limited Business Overview & Revenue Model

Company Description

Rane (Madras) Limited manufactures and sells auto components in India and internationally. It offers steering gears; steering and suspension linkage products; and high precision aluminum die castings. The company markets and sells its products to the manufacturers of passenger cars, utility vehicles, and farm tractors. It also exports its products. The company was founded in 1960 and is headquartered in Chennai, India. Rane (Madras) Limited is a subsidiary of Rane Holdings Limited.

How the Company Makes Money

RML primarily makes money by manufacturing and selling automotive components to vehicle manufacturers (OEMs). Its revenue model is largely business-to-business: (1) OEM supply revenue: long-run series production of steering/suspension and related components delivered against OEM purchase orders and production schedules; pricing and volumes are typically driven by vehicle production levels, platform/vehicle program wins, and negotiated supply terms. (2) Replacement/aftermarket revenue: sale of components into the independent replacement market (where applicable), which can provide recurring demand tied to the on-road vehicle parc and service/repair cycles. (3) Export revenue: sales to customers outside India when the company supplies global platforms or overseas customers. Earnings are influenced by factors common to auto-component suppliers, including capacity utilization, raw-material costs and pass-through mechanisms (where contractually available), operational efficiency/yield, product mix (higher precision/value-added parts generally carrying better margins), and customer concentration/vehicle-cycle effects. Specific information on named major customers, contract structures (e.g., exact pass-through clauses), and the company’s segment-wise revenue split is not available in the provided context and is therefore null.

Rane (Madras) Limited Financial Statement Overview

Summary

Rane (Madras) Limited shows positive financial momentum with improved revenue and profit margins. The transition to profitability is notable, but leverage remains a concern with a debt-to-equity ratio of 1.21. Cash flow management is strong, indicating a trajectory towards financial stability.

Income Statement

Rane (Madras) Limited has demonstrated strong revenue growth from the previous year, with a significant increase in gross profit margin from 29.3% to 24.7%. The net profit margin improved from a negative to 1.1%, indicating a transition to profitability. However, EBIT and EBITDA margins remain moderate at 4.4% and 8.4%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio stands at 1.21, indicating a moderate level of leverage. The return on equity has improved to 5.6%, reflecting better profitability. The equity ratio is at 29.6%, showing a stable capital structure, but with potential risks due to high debt levels.

Cash Flow

Rane (Madras) Limited has shown a strong improvement in operating cash flow, with a positive free cash flow indicating better cash management. The operating cash flow to net income ratio is high, demonstrating efficient cash generation relative to earnings. Despite this, the free cash flow growth rate suggests volatility in capital expenditures and cash reserves.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.23B	34.06B	34.63B	23.54B	17.42B	12.59B
Gross Profit	11.64B	8.41B	6.46B	6.87B	6.14B	3.86B
EBITDA	2.69B	2.85B	456.30M	1.88B	1.27B	363.20M
Net Income	463.00M	376.50M	30.20M	300.20M	106.60M	-611.40M
Balance Sheet
Total Assets	24.11B	22.69B	13.69B	13.49B	12.30B	10.32B
Cash, Cash Equivalents and Short-Term Investments	790.50M	432.70M	383.90M	284.80M	128.50M	124.70M
Total Debt	8.32B	8.13B	7.28B	6.68B	5.85B	4.70B
Total Liabilities	17.31B	15.98B	11.13B	11.07B	10.02B	8.50B
Stockholders Equity	6.80B	6.71B	2.56B	2.42B	2.28B	1.82B
Cash Flow
Free Cash Flow	-697.60M	637.00M	-171.00M	-206.80M	-1.06B	-346.80M
Operating Cash Flow	237.80M	2.48B	1.20B	876.40M	-56.50M	459.10M
Investing Cash Flow	230.30M	-1.53B	-1.57B	-1.06B	-1.24B	-799.70M
Financing Cash Flow	-281.40M	-1.02B	-553.60M	351.20M	1.34B	210.60M

Rane (Madras) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 847.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RML, the sentiment is Negative. The current price of 847.25 is above the 20-day moving average (MA) of 794.81, above the 50-day MA of 793.04, and above the 200-day MA of 825.41, indicating a bearish trend. The MACD of -19.78 indicates Positive momentum. The RSI at 33.80 is Neutral, neither overbought nor oversold. The STOCH value of 9.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RML.

Rane (Madras) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JAYBARMARU	74 Outperform	₹9.33B	13.37	―	0.74%	4.76%	150.94%
TALBROAUTO	65 Neutral	₹14.61B	15.60	―	0.32%	0.74%	-17.90%
REMSONSIND	63 Neutral	₹3.02B	20.06	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRITIKAUTO	58 Neutral	₹2.04B	11.02	―	―	26.03%	-10.27%
RML	57 Neutral	₹20.00B	18.11	―	1.07%	54.17%	1117.99%
SHIVAMAUTO	45 Neutral	₹2.11B	-3.18	―	―	-11.18%	-22.17%

Rane (Madras) Limited Corporate Events

CRISIL Reaffirms Credit Ratings on Rane (Madras) as Bank Facilities Are Enhanced

Rane (Madras) Limited has announced that CRISIL has reaffirmed its credit ratings on the company’s enhanced bank loan facilities, which have increased to Rs 1,085 crore from Rs 910.51 crore. The long-term bank facilities remain rated at ‘CRISIL A+/Stable’, while the short-term facilities continue at ‘CRISIL A1’, indicating that the rating agency sees no deterioration in the company’s credit profile despite the higher sanctioned debt limits. The reaffirmation supports the company’s financial standing with lenders, helps maintain access to bank funding on competitive terms, and signals stability in its creditworthiness to investors and other stakeholders.