EN DE

Rain Industries Limited (500339) Fair Value & Analysis

Basic Materials · IN · Market cap ₹32.7B

RI Rain Industries Limited 500339 · BSE
Price₹209.05
Fair Value₹21.49
Upside-89.7%
Quality60/100
Watch Rain Industries Limited for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Thin margins · 3.4% net margin
Moderate debt
1.96% dividend yield
Narrow moat 37/100
Evidence: High Range ₹16.12 – ₹26.87 Share as image

Fair value as of: Aug 14, 2026

From 22 valuation models · updated yesterday

Share price +0.2% over the past month.

A solid business, but screening 90% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹26.87). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

₹258.20 ₹101.30 Fair Value ₹21.49 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range ₹101.30 – ₹258.20 · fair‑value band ₹16.12 – ₹26.87 · the ₹209.05 price screens above the ₹21.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 14, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Rain Industries Limited (500339) currently trades at ₹209.05, while our model-based Fair Value estimate is ₹21.49, implying the stock looks roughly 89.7% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Rain Industries Limited generated revenue of ₹107B at a net margin of 3.4%. Revenue declined 14.2% year over year. The stock trades on a trailing P/E of 9.4 (as of Aug 14, 2026). Fundamentals as of Aug 14, 2026

Our scenario range runs from ₹16.12 (bear case) to ₹26.87 (bull case); at ₹209.05, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 109% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -43% fair-value upside, at -90%, 500339 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹19.43 ₹102.04 80
Residual Income ₹134.16 ₹125.43 ₹88.50 76
Rev-Margin DCF ₹84.27 ₹228.08 ₹405.58 74
All 22 models by family
DCF Models
FCF DCF ₹14.99 ₹107.15 38
Owner Earnings ₹41.99 ₹148.25 31
5Y Revenue Exit ₹84.27 ₹225.10 ₹435.97 39
5Y EBITDA Exit ₹148.92 ₹335.14 ₹588.24 41
10Y Revenue Exit ₹29.10 ₹142.32 ₹272.71 36
10Y EBITDA Exit ₹77.94 ₹213.94 ₹369.23 37
Earnings-Based
Graham-Dodd ₹8.60 ₹13.33 ₹15.94 54
EPV ₹160.85 ₹214.57 ₹261.58 59
Dividend Discount
Gordon GGM ₹9.18 ₹10.81 ₹12.66 70
DDM Multi-Stage ₹9.18 ₹12.09 ₹15.80 61
Multiples
P/E Multiple ₹16.12 ₹21.49 ₹26.87 63
P/S Multiple ₹16.12 ₹21.49 ₹26.87 58
P/B Multiple ₹16.12 ₹21.49 ₹26.87 55
EV/EBIT ₹233.93 ₹365.74 ₹497.55 53
EV/EBITDA ₹326.51 ₹489.17 ₹651.84 54
EV/Revenue ₹181.21 ₹328.08 ₹474.96 43
Asset-Based
NCAV (Graham) ₹98.67 ₹132.22 ₹197.35 50
Growth DCF
Growth DCF ₹19.43 ₹102.04 80
Rev-Margin DCF ₹84.27 ₹228.08 ₹405.58 74
Economic Profit
Residual Income ₹134.16 ₹125.43 ₹88.50 76
ROIC Compounder ₹160.85 ₹217.10 ₹281.39 72
Growth Earnings
Growth-Adj P/E ₹11.48 ₹16.41 ₹21.33 68

Widest divergence: DCF Models (₹142.32) versus Dividend Discount (₹10.81). Highest evidence: Growth DCF (80).

Notify me when 500339 reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) ₹107B
Revenue growth (YoY) -14.2%
Net margin 3.4%
P/E ratio 9.4 as of Aug 14, 2026
Operating margin 9.4%
EPS (TTM) ₹10.89
More key figures
Dividend yield 2.0%
EPS growth (YoY) +43.9%

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 56 · Market factors (momentum, volatility) 62

Profitability 37
Margins and returns on capital today
Quality Growth 83
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 28
Calm price path (market factor)
Momentum 79
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Rain Industries Limited, together with its subsidiaries, manufactures and sells carbon products, cement, electricity, and specialty chemicals worldwide. The company operates through three segments: Carbon, Advanced Materials, and Cement.

Full company description

Rain Industries Limited, together with its subsidiaries, manufactures and sells carbon products, cement, electricity, and specialty chemicals worldwide. The company operates through three segments: Carbon, Advanced Materials, and Cement. It offers calcined petroleum coke, coal tar pitch, and green petroleum coke, as well as other derivatives of coal tar distillation, including carbon black oil, creosote oil, naphthalene, and other aromatic oils; naphthalene derivatives, including naphthalene, phthalic anhydride, polynaphthalene sulfonates, and modifiers; petrochemical intermediates, such as benzene, toluene, xylene, solvents, and fuel additives; carbon resins, hydrocarbon resins, pure resins, hydrogenated resins, and phenolics; and engineered products comprising binders and sealer coatings, as well as superplasticizers. The company also engages in the co-generation of energy through waste heat recovered in the calcining process. In addition, it produces and sells ordinary Portland and Portland pozzolana cement under the Priya Cement brand name. The company was formerly known as Rain Commodities Limited and changed its name to Rain Industries Limited in July 2013. Rain Industries Limited was incorporated in 1974 and is headquartered in Hyderabad, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Rain Industries Limited reported revenue of ₹169B in FY2025 versus ₹145B in FY2021, a compound +3.9%/yr. Reported net income was ₹425M in FY2025, compounding −48.0%/yr from FY2021.

Growth Quality 76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹169B
Latest YoY
+10.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.1%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.1%
Revenue +3.9%/yr
FY21 ₹145B
FY22 ₹210B
FY23 ₹181B
FY24 ₹154B
FY25 ₹169B
Net income −48.0%/yr
FY21 ₹5.8B
FY22 ₹14.4B
FY23 −₹9.4B
FY24 −₹5.6B
FY25 ₹425M

500339 screens 90% overvalued. Compare with BASF India Limited →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Rain Industries Limited Fair Value". https://www.fairvalue-calculator.com/stock/500339

Peer Group

Basic Materials · 221 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Chemicals - Major Diversified” was too small, so the broader sector is used.)

Quality Score 60 · Top 25%
Fair Value upside −90% · Bottom 25%
Return on assets 3% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 9% · Above median
Revenue growth -14% · Bottom 25%
Dividend yield (TTM) 2.0% · Above median
Debt / equity 0.98× · Higher than 75% of peers

Valuation Multiples vs Basic Materials median · lower = cheaper

P/E (TTM) 9.4× · Cheaper than 75% of peers
P/B 0.49× · Cheaper than 75% of peers
P/S (TTM) 0.31× · Cheaper than 75% of peers
EV/EBITDA 5.9× · Cheaper than median

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Chemicals - Major Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

Stock Price Fair Value vs Fair Value
BASF India Limited 500042 ₹3,990 ₹1,527 -62%
NOCIL Limited 500730 ₹163.00 ₹93.31 -43%
GHCL Limited 500171 ₹428.60 ₹479.96 +12%
Bhansali Engineering Polymers Limited 500052 ₹120.65 ₹119.36 -1%
Uniphos Enterprises Limited 500429 ₹96.00 ₹164.02 +71%
Diamines and Chemicals Limited 500120 ₹240.30 ₹47.45 -80%
Lords Chloro Alkali Limited 500284 ₹137.75 ₹41.77 -70%
Ishan Dyes & Chemicals Limited 531109 ₹50.00 ₹59.26 +19%
Universal Starch-Chem Allied Limited 524408 ₹199.60 ₹26.59 -87%
Laffans Petrochemicals Limited 524522 ₹28.50 ₹8.78 -69%

Compare Rain Industries Limited with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Basic Materials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Rain Industries Limited (500339) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of ₹21.49 versus a price of ₹209.05, about −90% (overvalued).
What is the fair value of 500339?
Our model-based fair value for Rain Industries Limited is ₹21.49 (as of Aug 14, 2026), built from audited fundamentals. The current price is ₹209.05.
What is the quality score of 500339?
Rain Industries Limited has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Rain Industries Limited (500339)?
Rain Industries Limited reported trailing-twelve-month revenue of about ₹107B (latest available figure, as of Aug 14, 2026).
What is the net profit margin of 500339?
The net profit margin of Rain Industries Limited is about 3.4%, meaning it keeps roughly 3.4% of revenue as net income. Based on the latest reported figures.
Does Rain Industries Limited pay a dividend?
Rain Industries Limited currently shows a dividend yield of about 1.96% relative to its recent price (as of Aug 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track Rain Industries Limited and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.