Stock Performance and Market Context
On 24 Nov 2025, Rain Industries' share price touched Rs.110.5, the lowest level recorded in the past year. This decline comes after two consecutive days of losses, during which the stock has returned -2.59%. The stock's current price remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex opened 88.12 points higher and was trading at 85,418.98, reflecting a 0.22% gain. The index is nearing its 52-week high of 85,801.70, just 0.45% away, supported by mega-cap stocks and a bullish alignment of its 50-day and 200-day moving averages. Over the past three weeks, the Sensex has gained 2.65%, highlighting a divergence between the benchmark and Rain Industries' stock trajectory.
Long-Term Performance and Relative Comparison
Rain Industries has underperformed significantly over the last year, with a total return of -25.71%, compared to the Sensex's positive return of 7.97% during the same period. The stock's 52-week high was Rs.196.95, underscoring the extent of the decline to the current low.
Over the past three years, the stock has consistently lagged behind the BSE500 index, reflecting persistent challenges in matching broader market gains. This underperformance is notable given the company's position within the petrochemicals sector, which has seen mixed results amid fluctuating commodity prices and demand patterns.
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Financial Metrics and Operational Insights
Rain Industries' long-term financial indicators reveal moderate growth and profitability. Over the last five years, net sales have grown at an annual rate of 8.90%, while operating profit has expanded at 3.88% annually. The company's average Return on Capital Employed (ROCE) stands at 8.53%, reflecting modest capital efficiency within the petrochemicals industry.
Debt servicing capacity remains a concern, with a Debt to EBITDA ratio of 5.71 times, indicating a relatively high leverage level. This ratio suggests that the company allocates a significant portion of earnings before interest, taxes, depreciation, and amortisation towards debt obligations, which may constrain financial flexibility.
Institutional investor participation has also declined, with a reduction of 0.64% in their stake over the previous quarter. Currently, institutional investors hold 15.37% of the company's shares, a figure that may reflect shifting confidence levels among market participants with access to detailed fundamental analysis.
Quarterly Results and Valuation Considerations
Despite the stock's subdued price performance, Rain Industries reported positive quarterly results for the period ending September 2025. Profit Before Tax Less Other Income (PBT LESS OI) reached Rs.156.31 crores, representing a growth of 415.8% compared to the previous four-quarter average. Net Profit After Tax (PAT) for the quarter was Rs.106.01 crores, the highest recorded in recent periods. Net sales also reached a quarterly peak of Rs.4,475.71 crores.
The company’s ROCE for the quarter was 4.7%, accompanied by an Enterprise Value to Capital Employed ratio of 0.8, suggesting a valuation that is attractive relative to historical peer averages. Profit growth over the past year has been notable at 91.3%, contrasting with the negative stock return of -25.71% during the same timeframe.
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Sectoral and Market Dynamics
The petrochemicals sector, in which Rain Industries operates, has experienced varied performance across companies, influenced by global commodity price fluctuations, demand-supply imbalances, and regulatory factors. While some peers have maintained or improved valuations, Rain Industries' stock price has reflected caution among investors, as evidenced by its current position below all key moving averages.
Market-wide, the Sensex's upward trend and proximity to its 52-week high highlight a broader positive sentiment that has not been mirrored in Rain Industries' share price. This divergence underscores the importance of company-specific factors in shaping stock performance within a generally buoyant market environment.
Summary of Key Price and Performance Indicators
To summarise, Rain Industries' stock has reached Rs.110.5, its lowest level in 52 weeks, following a period of consecutive declines. The stock trades below all major moving averages, signalling sustained pressure. Over the past year, the stock has returned -25.71%, contrasting with the Sensex's 7.97% gain. Despite positive quarterly earnings growth and an attractive valuation metric, the stock's price has not reflected these fundamentals, influenced by leverage concerns and reduced institutional participation.
Investors and market observers will note the contrast between the company's operational results and its market valuation, which remains subdued relative to sector peers and broader market indices.
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