Rane (Madras) Limited (RML) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Rane (Madras) Limited stock ₹727, price ₹1,256, that is 42.1% below the price, quality 35 out of 100. Rating: strongly overvalued. Calculated from audited financials with 16 of our 26 valuation models and 37 quality factors, updated daily.
Rane (Madras) Limited engages in the manufacture and marketing of auto components for transportation industry in India and internationally.
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It offers steering and suspension systems, linkage products, steering gears, aluminum high pressure die-casting products, brake components, and engine components. The company markets and sells its products to the manufacturers of passenger cars, utility vehicles, and farm tractors.
It also exports its products. The company was founded in 1960 and is headquartered in Chennai, India. Rane (Madras) Limited operates as a subsidiary of Rane Holdings Limited.
Stock analysis
Rane (Madras) Limited (RML) currently trades at ₹1,256, while our model-based Fair Value estimate is ₹727.23, 42% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹862.47 per share, and 1 of the 16 models we run sit above the ₹1,256 price.
Bear case: the Dividend Discount group reads lowest at ₹91.95, and 15 of the 16 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ₹513.17 (bear) to ₹909.05 (bull), the price of ₹1,256 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 35/100 (below-average quality), in the Consumer Cyclical sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Rane (Madras) Limited reported revenue of ₹38.6B in FY2026 versus ₹17.4B in FY2022, a compound +22.0%/yr. Reported net income was ₹1.1B in FY2026, compounding +78.2%/yr from FY2022.
Key figures
Market cap ₹34.7B (≈ $370M) Small · P/E ratio 29.6 · P/S ratio 0.86 · EPS (TTM) ₹42.42 · Dividend yield 1.3% · Net margin 3.0% · Return on equity 15.1% · Return on assets (EBIT) 5.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 40 out of 100 (low confidence).
What moves the price
The share trades about 11% below its 52-week high and 103% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −23% fair-value upside, at −42%, RML screens richer than that median.
Fair Value models
Bear₹513.17Fair Value ₹727.23Bull₹909.05
Price ₹1,256 · Downside -42.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹16.14 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income₹241.24₹279.00₹380.0076
EPV₹403.43₹452.48₹492.3874
ROIC Compounder₹446.20₹565.23₹710.2772
All 16 models by family
Earnings-Based
Graham-Dodd₹264.45₹1,459₹2,02463
Lynch FV₹406.44₹580.62₹754.8161
PEG = 1.0₹406.44₹580.62₹754.8157
EPV₹403.43₹452.48₹492.3874
Dividend Discount
Gordon GGM₹56.08₹94.53₹123.2968
DDM Multi-Stage₹56.08₹89.37₹101.6467
Multiples
P/E Multiple₹641.68₹855.57₹1,06963
P/S Multiple₹495.84₹661.12₹826.4158
P/B Multiple₹506.97₹675.95₹844.9455
EV/EBIT₹687.01₹1,001₹1,31565
EV/EBITDA₹851.81₹1,221₹1,59067
EV/Revenue₹379.98₹652.12₹924.2652
Asset-Based
NCAV (Graham)₹135.23₹181.20₹270.4554
Economic Profit
Residual Income₹241.24₹279.00₹380.0076
ROIC Compounder₹446.20₹565.23₹710.2772
Growth Earnings
Growth-Adj P/E₹603.73₹862.47₹1,12167
The fair value above starts from this blend and is adjusted for dilution from new shares.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+13.4%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+17.9%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+25.1%
Start year 2021 (pandemic). Over 10 years: +15.8% a year
Revenue growth 20 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+14.1%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ +42.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+41.0%
Dividend (yield on the price)1.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.41.0% vs 12.6%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−3% → 5%
Pace: the 5-year rate starts in 2021 (pandemic)
⚠ Approximate: the rate leans on 2026, which sits 111% above its own trend.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Auto Parts · 655 stocks
Beats the industry median on 5/13 measures
Overall it trails its industry peers.
Valuation
Quality Score35 · Bottom 25%
Fair Value upside−42.1% · Bottom 25%
Profitability
Return on equity (12 months)15.1% · Top 25%
Return on assets4.3% · Above median
Net margin (12 months)3.0% · Below median
Operating margin (12 months)4.6% · Below median
Growth and dividend
Revenue growth (quarter YoY)18.3% · Above median
Dividend yield (12 months)1.3% · Below median
Balance sheet
Debt / equity0.06× · Below median
Valuation Multiplesvs Auto Parts median · lower = cheaper
P/E (12 months)29.6× · Pricier than median
P/B4.63× · Priciest 25%
P/S (12 months)0.86× · Cheaper than median
EV/EBITDA10.1× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 33
FUTURE (revenue growth)92· sector 34
PAST (return on equity)60· sector 31
HEALTH (low debt)97· sector 95
DIVIDEND (yield)25· sector 39
VALUE 0: the price sits above our fair-value range.
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.
Is Rane (Madras) Limited (RML) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of ₹727.23 versus a price of ₹1,256, about 42% lower (overvalued).
What is the fair value of RML?
Our model-based fair value for Rane (Madras) Limited is ₹727.23 (as of Nov 5, 2026), built from audited fundamentals. The current price: ₹1,256.
What is the quality score of RML?
Rane (Madras) Limited has a Quality Score of 35/100. 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 price target for Rane (Madras) Limited (RML)?
Our model-based price target is the fair value of ₹727.23 (as of Nov 5, 2026) from 16 valuation models. Cautious scenario ₹513.17, optimistic scenario ₹909.05. It is a calculation from audited fundamentals, not an analyst target.
What is the Rane (Madras) Limited stock forecast for 2026?
Our models put fair value at ₹727.23, about 42% lower versus a price of ₹1,256 (overvalued). Cautious scenario ₹513.17, optimistic scenario ₹909.05. The calculation is refreshed regularly with new filings.
What is the revenue of Rane (Madras) Limited (RML)?
Rane (Madras) Limited reported trailing-twelve-month revenue of about ₹40.2B (latest available figure, as of Nov 5, 2026).
Does Rane (Madras) Limited pay a dividend?
Rane (Madras) Limited currently shows a dividend yield of 1.27% relative to its recent price (as of Nov 5, 2026).
How much is the dividend of Rane (Madras) Limited (RML) and when is the ex-dividend date?
Rane (Madras) Limited pays a dividend of ₹16.00 per share a year, a dividend yield of 1.3%. The last ex-dividend date was Jul 29, 2026. The payout ratio is 37.7% of earnings. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What is the intrinsic value of Rane (Madras) Limited (RML)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rane (Madras) Limited it is ₹727.23 per share (as of Nov 5, 2026), against a price of ₹1,256. It is the blended result of 16 valuation models in 6 families (Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is Rane (Madras) Limited stock overvalued or undervalued in 2026?
As of Nov 5, 2026, RML trades above its calculated fair value: price ₹1,256, fair value ₹727.23, a gap of about −42% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RML?
No. The price is what the market pays today (₹1,256); the fair value is what the company's own numbers justify (₹727.23). For Rane (Madras) Limited the two are ₹529.17 per share apart. That gap is exactly why we show both numbers side by side.
How much is Rane (Madras) Limited worth?
The market values Rane (Madras) Limited at about ₹34.7B (market capitalisation, as of Nov 5, 2026). Per share that is ₹1,256; our models calculate a fair value of ₹727.23 per share.
What do the bullish and bearish scenarios say about RML?
Our models span a range for Rane (Madras) Limited: cautious scenario ₹513.17, base ₹727.23, optimistic ₹909.05 per share (as of Nov 5, 2026, price ₹1,256). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RML?
Rane (Madras) Limited trades at a price-to-earnings ratio of 29.6 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹727.23 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2017 to 2026), reported earnings: 44.8. Other multiples: P/B 4.6, P/S 0.9, EV/EBITDA 10.1.
How solid is the balance sheet of Rane (Madras) Limited (RML)?
Balance-sheet figures for Rane (Madras) Limited (as of Nov 5, 2026): return on equity 15.1%, debt of 0.06 per unit of equity. They feed the Quality Score of 35/100, which measures business quality independently of the share price.
How far is RML from its 52-week high?
Rane (Madras) Limited trades at ₹1,256, about 11% below its 52-week high of ₹1,409 and 103% above the low of ₹620.00 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ₹727.23 is for.
Which stocks are comparable to Rane (Madras) Limited?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Rane (Madras) Limited stock attractive at the current price?
The data as of Nov 5, 2026: price ₹1,256, calculated fair value ₹727.23 (−42%), Quality Score 35/100, from 16 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RML calculated?
We run Rane (Madras) Limited through 16 models from 6 families: Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹727.23 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Rane (Madras) Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Rane (Madras) Limited (RML)?
The closing price on Nov 6, 2026 was ₹1,256. Our model-based fair value is ₹727.23, about 42% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Rane (Madras) Limited right now?
The price sits above even our optimistic bull case (₹909.05). The favourable scenario is already priced in. Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
Key figures of Rane (Madras) Limited
How large is the market capitalisation of Rane (Madras) Limited (RML)?
The market capitalisation of Rane (Madras) Limited is ₹34.7B (≈ $370M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Rane (Madras) Limited (RML)?
The price-to-sales ratio of Rane (Madras) Limited is 0.86 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Rane (Madras) Limited (RML)?
Earnings per share at Rane (Madras) Limited are ₹42.42 (price ÷ EPS = P/E 29.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Rane (Madras) Limited (RML)?
The dividend yield of Rane (Madras) Limited is 1.3% (payout 37.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Rane (Madras) Limited (RML)?
The net margin of Rane (Madras) Limited is 3.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Rane (Madras) Limited (RML)?
The return on equity (ROE) of Rane (Madras) Limited is 15.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Rane (Madras) Limited (RML)?
On an EBIT basis the return on assets of Rane (Madras) Limited is 5.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Rane (Madras) Limited (RML)?
The operating margin of Rane (Madras) Limited is 4.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Rane (Madras) Limited (RML)?
Revenue at Rane (Madras) Limited is growing +18.3% versus a year earlier (3y avg +17.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Rane (Madras) Limited (RML)?
Earnings per share at Rane (Madras) Limited are growing +62.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Rane (Madras) Limited (RML) generate?
The free cash flow of Rane (Madras) Limited is −₹270M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Rane (Madras) Limited (RML) carry?
The net debt of Rane (Madras) Limited is ₹7.0B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 5, 2026