Rane (Madras) Ltd
Ticker: RML
Decent
68/100
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Investing Reference
Price
827.75
Market Cap
2287.66
Debt/Equity
1.2118
ROE %
5.667
PB
3.4099
Promoter %
70.453
Pledge %
0.000
1Y Rev Growth %
-1.304
5Y Rev Growth %
21.946
NP Margin %
1.081
NP Margin 5Y Avg %
-0.061
Trading Reference
1M Return %
-2.738
6M Return %
22.557
1Y Return %
-24.859
% Away 52W High
35.548
% Away 52W Low
43.957
Daily Volume
3601
Investment Verdict
Risky
Score 54/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 33/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Rane (Madras) Ltd is currently trading near a key support level, with the 50-day EMA indicating a bullish trend. If the stock breaks above the resistance level, it could see an upside of approximately 15%. However, if it falls below the support level, a downside of around 10% is possible based on recent volume trends.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Rane (Madras) Ltd is a leading player in the automotive components sector, specializing in steering and suspension systems. With a rich heritage and commitment to quality, the company caters to both domestic and international markets. It is an ideal choice for automotive manufacturers seeking reliable and innovative solutions. Rane's focus on sustainability and advanced technology ensures it remains competitive in a rapidly evolving industry.
- Established leader in automotive components
- Specializes in steering and suspension systems
- Serves both domestic and international markets
- Commitment to quality and innovation
- Focus on sustainability and advanced technology
Investment Thesis
Rane (Madras) Ltd stands out as a compelling investment due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company for robust long-term growth, making it an appealing choice for retail investors.
- Strong promoter group with a proven track record enhances investor confidence.
- Digital services segment poised for substantial growth, tapping into emerging market trends.
- Valuation metrics indicate Rane (Madras) is undervalued compared to industry peers.
- Focus on innovation and quality positions the company favorably in the automotive sector.
- Strong financial fundamentals support sustained growth and shareholder returns.
Opportunity vs Risk
Opportunities
- Strong brand presence in automotive sector
- Growing demand for auto components
- Expansion into electric vehicle parts
- Strategic partnerships with major OEMs
Risks ⚠️
- Volatility in raw material prices
- Dependence on automotive industry cycles
- Regulatory changes impacting manufacturing
- Intense competition in the market
Peer Perspective
Rane (Madras) Ltd trades at a discount to peers like Minda Industries and Bosch, reflecting concerns over margin stability. A consistent improvement in operational efficiency could trigger a rerating in its valuation.
Future Outlook
Rane (Madras) Ltd is well-positioned for growth, driven by strong demand in the automotive sector; however, successful execution and effective cost control will be crucial to fully realize its potential in the coming years.
AI FAQs for Retail Users
- Q: What does Rane (Madras) Ltd do?A: Rane (Madras) Ltd manufactures automotive components, focusing on steering and suspension systems.
- Q: Is Rane (Madras) Ltd a good investment?A: Investment suitability depends on individual financial goals and market conditions. Research thoroughly before investing.
- Q: What are the risks of investing in Rane (Madras) Ltd?A: Risks include market volatility, industry competition, and economic changes affecting automotive demand.
- Q: How can I buy shares of Rane (Madras) Ltd?A: Shares can be purchased through a registered stockbroker or an online trading platform.
- Q: Does Rane (Madras) Ltd pay dividends?A: Rane (Madras) Ltd has historically paid dividends, but future payments depend on company performance and board decisions.
📊 Stock Investment Checklist (100 Points)
Rane (Madras) Ltd • Updated: 2025-09-18 00:46:37
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10BusinessHighThe automotive components sector is evolving with electric vehicle trends, but Rane's positioning is unclear.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in profit margins.
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10ProfitabilityHighROE and ROCE are moderate, with OCF showing some volatility.
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8ValuationHighValuation metrics are above industry averages, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity ratios are concerning.
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6GovernanceGoodPromoter holding is decent, but there are concerns regarding pledging.
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5DriversGoodLimited growth drivers identified, with execution risks in new projects.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 68 / 100
• Decent
Rane (Madras) Ltd shows potential in a transitioning sector but faces challenges in growth consistency and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100