Rane (Madras) Limited (RML) Fair Value & Analysis
Consumer Cyclical · IN · Market cap ₹33.5B
Fair value as of: Aug 8, 2026
From 17 valuation models · updated 2 days ago
Share price −18.8% over the past month.
Below-average quality, and screening another 31% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (₹909.05). The favourable scenario is already priced in.
- Weak quality (34/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.
How to read this chart
60‑month range ₹262.96 – ₹1,400 · fair‑value band ₹513.17 – ₹909.05 · the ₹1,055 price screens above the ₹727.23 fair value. Dashed = 300-day average. As of Aug 8, 2026.
Analysis
Rane (Madras) Limited (RML) currently trades at ₹1,055, while our model-based Fair Value estimate is ₹727.23, implying the stock looks roughly 31.1% overvalued today. The Quality Score stands at 34/100 (below-average quality), in the Consumer Cyclical 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, Rane (Madras) Limited generated revenue of ₹38.6B at a net margin of 2.8%. Revenue declined 42.8% year over year. It earns a return on equity of 15.1%. Net debt stands at ₹7.0B. Fundamentals as of Aug 8, 2026
Our scenario range runs from ₹513.17 (bear case) to ₹909.05 (bull case); at ₹1,055, 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 73% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at -31%, RML screens cheaper 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.
All 17 models by family
Widest divergence: Growth Earnings (₹862.47) versus Dividend Discount (₹128.26). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 37 · Market factors (momentum, volatility) 74
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
Rane (Madras) Limited engages in the manufacture and marketing of auto components for transportation industry in India and internationally. It offers steering and suspension systems, linkage products, steering gears, aluminum high pressure die-casting products, brake components, and engine components.
Full company description
Rane (Madras) Limited engages in the manufacture and marketing of auto components for transportation industry in India and internationally. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
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.
RML screens 31% overvalued. Compare with Hyundai Mobis Co →
Peer Group
Auto Parts · 642 stocks
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.
Valuation Multiples vs Auto Parts median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Hyundai Mobis Co 012330 | 482,000 KRW | 678,420 KRW | +41% |
| Magna International Inc MGAN | 1,122 MXN | 1,172 MXN | +4% |
| Samvardhana Motherson International Limited MOTHERSON | ₹144.17 | ₹80.63 | -44% |
| Bosch Limited BOSCHLTD | ₹41,110 | ₹14,004 | -66% |
| Bharat Forge Limited BHARATFORG | ₹2,117 | ₹441.74 | -79% |
| Uno Minda Limited UNOMINDA | ₹1,158 | ₹426.57 | -63% |
| Schaeffler India Limited SCHAEFFLER | ₹4,135 | ₹1,412 | -66% |
| Hankook Tire & Technology Co 161390 | 73,600 KRW | 196,479 KRW | +167% |
| MRF Limited MRF | ₹131,025 | ₹125,849 | -4% |
| Sona BLW Precision Forgings Limited SONACOMS | ₹792.00 | ₹207.06 | -74% |
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Frequently asked questions
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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.
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