Rain Industries Intrinsic Value

RAIN • Chemicals
Current Stock Price
₹113.08
Primary Intrinsic Value
₹151.20
Market Cap
₹757.6 Cr
+100.0% Upside
Median Value
₹226.16
Value Range
₹81 - ₹339
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

RAIN Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹151.20 ₹120.96 - ₹181.44 +33.7% EPS: ₹12.60, Sector P/E: 12x
Book Value Method asset ₹282.70 ₹254.43 - ₹310.97 +150.0% Book Value/Share: ₹1018.66, P/B: 1.0x
Revenue Multiple Method revenue ₹226.16 ₹203.54 - ₹248.78 +100.0% Revenue/Share: ₹2694.33, P/S: 0.8x
EBITDA Multiple Method earnings ₹226.16 ₹203.54 - ₹248.78 +100.0% EBITDA: ₹2656.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹282.70 ₹226.16 - ₹339.24 +150.0% CF Growth: 1.6%, Discount: 15%
PEG Ratio Method growth ₹80.64 ₹72.58 - ₹88.70 -28.7% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹103.82 ₹93.44 - ₹114.20 -8.2% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹226.16 ₹203.54 - ₹248.78 +100.0% ROE: 7.6%, P/E Multiple: 10x
Graham Defensive Method conservative ₹339.24 ₹305.32 - ₹373.16 +200.0% EPS: ₹12.60, BVPS: ₹1018.66
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

RAIN Intrinsic Value Analysis

What is the intrinsic value of RAIN?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Rain Industries (RAIN) is ₹226.16 (median value). With the current market price of ₹113.08, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹80.64 to ₹339.24, indicating ₹80.64 - ₹339.24.

Is RAIN undervalued or overvalued?

Based on our multi-method analysis, Rain Industries (RAIN) appears to be trading below calculated value by approximately 100.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.87 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 7.6% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 14.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.95x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2024 ₹1,943 Cr ₹1,815 Cr Positive Free Cash Flow 8/10
March 2023 ₹3,064 Cr ₹2,709 Cr Positive Free Cash Flow 8/10
March 2022 ₹1,036 Cr ₹748 Cr Positive Free Cash Flow 8/10
March 2021 ₹834 Cr ₹579 Cr Positive Free Cash Flow 8/10
March 2020 ₹1,823 Cr ₹1,424 Cr Positive Free Cash Flow 8/10