Recent Price Movement and Market Context
On 24 Nov 2025, Rain Industries' stock price touched Rs.110.5, the lowest level recorded in the past year. This decline follows a two-day consecutive fall, during which the stock has recorded a cumulative return of -2.59%. The day’s movement of -1.60% was in line with the broader petrochemicals sector, which has faced pressure despite the Sensex trading positively.
The Sensex opened 88.12 points higher and was trading at 85,418.98, reflecting a 0.22% gain. It remains close to its 52-week high of 85,801.70, supported by mega-cap stocks and a bullish trend with the 50-day moving average positioned above the 200-day moving average. In contrast, Rain Industries is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a weaker momentum relative to the broader market.
Long-Term Performance and Comparison
Over the past year, Rain Industries has recorded a return of -25.71%, significantly underperforming the Sensex, which has shown a positive return of 7.97% during the same period. The stock’s 52-week high was Rs.196.95, highlighting the extent of the recent decline. This underperformance extends over multiple years, with the stock consistently lagging behind the BSE500 index in each of the last three annual periods.
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Financial Metrics and Valuation Insights
Rain Industries’ long-term financial metrics reveal modest growth and profitability trends. The company’s net sales have grown at an annual rate of 8.90% over the last five years, while operating profit has expanded at a rate of 3.88% during the same period. The average Return on Capital Employed (ROCE) stands at 8.53%, reflecting moderate capital efficiency.
Debt servicing capacity remains a concern, with a Debt to EBITDA ratio of 5.71 times, indicating a relatively high leverage level. Institutional investors have reduced their holdings by 0.64% in the previous quarter, collectively holding 15.37% of the company’s shares. This reduction in institutional participation may reflect a cautious stance given the company’s financial profile.
Quarterly Performance Highlights
Despite the subdued stock performance, Rain Industries reported positive quarterly results for the period ending September 2025. Profit Before Tax (PBT) excluding other income reached Rs.156.31 crores, representing a growth of 415.8% compared to the average of the previous four quarters. The Profit After Tax (PAT) for the quarter was Rs.106.01 crores, the highest recorded in recent quarters. 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 discount relative to peers’ historical averages. Profit growth over the past year was recorded at 91.3%, contrasting with the negative stock return during the same period.
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Sector and Market Dynamics
The petrochemicals sector, to which Rain Industries belongs, has experienced mixed trends recently. While the broader market indices such as the Sensex have shown resilience and a three-week consecutive rise of 2.65%, individual stocks within the sector have faced varying pressures. Mega-cap stocks have led the market gains, whereas mid and small-cap companies, including Rain Industries, have struggled to maintain upward momentum.
Rain Industries’ market capitalisation grade is relatively low, reflecting its position among smaller capitalised companies within the sector. This factor, combined with the stock’s trading below all major moving averages, suggests a cautious market assessment of its near-term prospects.
Summary of Key Concerns
The stock’s fall to Rs.110.5, its 52-week low, is underpinned by several factors. These include the company’s modest long-term growth rates, elevated leverage levels, and reduced institutional investor participation. Additionally, the consistent underperformance relative to benchmark indices over multiple years has contributed to subdued market sentiment.
While quarterly results have shown some improvement in profitability and sales, these have not yet translated into positive momentum in the stock price. The valuation metrics indicate that the stock is trading at a discount compared to peers, but this has not been sufficient to reverse the downward trend in share price.
Conclusion
Rain Industries’ stock reaching a 52-week low of Rs.110.5 highlights the challenges faced by the company in the current market environment. Despite some positive quarterly financial indicators, the broader market assessment remains cautious, reflected in the stock’s position below key moving averages and its underperformance relative to the Sensex and sector peers. Investors and market participants continue to monitor the company’s financial metrics and sector dynamics as the stock navigates this low price territory.
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