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Check Before You Invest : Rain Industries Ltd

BSE: 500339 NSE: RAIN ISIN: INE855B01025
  |   Sector:  Oil & Gas   |   Industry:  Petrochemicals

Snapshot

Q.1 Which industry/sub-sector does Rain Industries Ltd belong to?
Rain Industries Ltd belongs to the Oil & Gas sector, operating specifically within the Petrochemicals segment.
Q.2 Is Rain Industries Ltd a good quality company?
Rain Industries Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Rain Industries Ltd undervalued or overvalued?
Rain Industries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Rain Industries Ltd a good buy now?
Rain Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rain Industries Ltd?
Rain Industries Ltd revenue growth is 10.2% for FY-2025 , which is above its 5 year CAGR of 10.1% , indicating faster growth.
Q.2 Gross Profit margin of Rain Industries Ltd?
Rain Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.9% for FY-2025 , which is in line with its 5 year median of 7.9% , indicating stable margins.
Q.3 Operating Profit Margin of Rain Industries Ltd?
Rain Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.94% for FY-2025 , which is in line with its 5 year median of 12.94% indicating stable margins.
Q.4 Net Profit Margin of Rain Industries Ltd?
Rain Industries Ltd Net Profit Margin is 0.8% for FY-2025 , is in line with with its 5 year median of 0.8%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 7.9 7.9
Operating Profit Margin 12.94 12.94
Net Profit Margin 0.8 0.8
Q.5 Return on Asset of Rain Industries Ltd?
Rain Industries Ltd Return on Asset is 0.68%, which is in line with its 5 year historical median of 0.68%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Rain Industries Ltd?
Rain Industries Ltd Return on equity is 1.93% for FY-2025 , which is in line with its historical median of 1.93%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Rain Industries Ltd?
Rain Industries Ltd Return on capital employed is 8.75% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Rain Industries Ltd?
Rain Industries Ltd Cash conversion cycle is 77 days, below its historical median of 77 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.87 0.87
ROE 1.93 1.93
ROCE 8.75 8.75
Cash Conversion Cycle 77 days 77 days
Q.9 Debt to Equity ratio of Rain Industries Ltd?
Rain Industries Ltd Debt-to-Equity ratio is 1.21 , which is above with the industry average of 0.46 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Rain Industries Ltd?
Rain Industries Ltd Debt to cash flow from operations is 10.08 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rain Industries Ltd?
Promoters hold 41.35% of the Rain Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rain Industries Ltd vs industry peers?
Rain Industries Ltd revenue CAGR is 10.12% , compared to the industry median CAGR of 12.24% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 16,945.8 1,481.3
Gross Profit 1,338.7 93.5
Operating Profit 2,137 99
Net Profit 136 56
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.87 1.79
ROE 1.93 10.39
ROCE 8.75 13.99
Cash Conversion Cycle (days) 77.29 41

Valuation & price assessment

Q.1 Stock return of Rain Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.2% -4.2% -5.8% -6.5%
Q.3 Valuation ratios of Rain Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 104.45 12.29 37.80
Price to Book 0.6 0.78 2.05
Price to Sales 0.26 0.37 1.35
EV to EBITDA 5.26 6.46 10.08

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