On 20 Nov 2025, Rain Industries traded with an intraday high of Rs.115.95, reflecting a 2.47% increase from its opening price. However, the closing price settled at the 52-week low of Rs.112. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend over multiple time frames.
In contrast, the broader market displayed strength on the same day. The Sensex opened at 85,470.92 points, gaining 284.45 points or 0.33%, and reached a new 52-week high of 85,466.37 points. The index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish market environment. Mega-cap stocks led this upward momentum, further highlighting the divergence between Rain Industries and the overall market.
Over the past year, Rain Industries has recorded a return of -22.11%, underperforming the Sensex, which posted a positive return of 10.16% during the same period. The stock’s 52-week high was Rs.196.95, indicating a substantial decline from its peak.
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Rain Industries operates within the petrochemicals sector, which has seen mixed performance in recent times. The company’s long-term financial metrics reveal certain areas of concern. The average Return on Capital Employed (ROCE) stands at 8.53%, reflecting modest capital efficiency. Net sales have grown at an annual rate of 8.90% over the last five years, while operating profit has expanded at a slower pace of 3.88% annually. These figures suggest restrained growth in both top-line and operating profitability.
Debt servicing capacity is another factor influencing the stock’s performance. The company’s Debt to EBITDA ratio is 5.71 times, indicating a relatively high leverage level. This ratio points to a greater burden of debt relative to earnings before interest, taxes, depreciation, and amortisation, which may affect financial flexibility.
Institutional investors have reduced their holdings by 0.64% in the previous quarter, collectively holding 15.37% of the company’s shares. This decline in institutional participation may reflect a cautious stance towards the stock amid its recent performance trends.
Rain Industries has consistently underperformed against the BSE500 benchmark over the last three years, with negative returns in each annual period. This persistent underperformance contrasts with the broader market’s positive trajectory and highlights challenges faced by the company in delivering shareholder value.
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Despite the subdued stock price, Rain Industries reported positive quarterly results in September 2025. Profit Before Tax Less Other Income (PBT LESS OI) reached Rs.156.31 crore, representing a growth of 415.8% compared to the previous four-quarter average. The Profit After Tax (PAT) for the quarter was Rs.106.01 crore, the highest recorded in recent periods. Net sales for the quarter also reached a peak of Rs.4,475.71 crore.
The company’s ROCE for the quarter was 4.7%, accompanied by an Enterprise Value to Capital Employed ratio of 0.8, indicating a valuation that is attractive relative to capital employed. Rain Industries is trading at a discount compared to its peers’ average historical valuations, which may reflect market caution given the broader financial context.
Over the past year, while the stock price has declined by 22.11%, the company’s profits have risen by 91.3%, illustrating a divergence between earnings performance and market valuation. This disparity may be influenced by the company’s leverage, growth rates, and investor sentiment.
In summary, Rain Industries’ stock has reached a significant 52-week low of Rs.112 amid a market environment where the Sensex is at a 52-week high. The company’s financial metrics show modest growth and profitability alongside elevated leverage and reduced institutional participation. Quarterly results indicate some improvement in earnings, yet the stock remains below all major moving averages, reflecting ongoing market caution.
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