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News Topical, Digital Desk : Rain Industries, a petrochemical company listed on the BSE Smallcap Index, is seeing a sharp rise today, gaining over 4%. The stock's gains are part of a sustained rally over the past several days, which has seen the stock return over 50% in a month. This gain has come close to the stock's lows, although even after this gain, the stock is still trading well below its year's highs.
The stock has seen sharp fluctuations,
surpassing the 153 level in today's session. While the stock was below the 100 level on December 9th, its lowest level of the year, it reached 178 at the end of January last year, its highest level of the year. The stock has seen sharp fluctuations over the past year. On August 7th, the stock made a similar rally, reaching above 160, before slipping back to 100 in December. Why is the stock currently rallying? The stock's low levels are due to positive sentiments, driven by expectations of a continued rise in aluminum prices, and the stock's presence at lower levels. Rain Industries co-produces calcined petroleum coke (CPC) and coal tar pitch, which are crucial raw materials for aluminum production. Consequently, the company is considered an indirect beneficiary of the aluminum cycle's uptrend. Stock Market: Amid sharp decline in RIL, this brokerage raises target, now how much growth is expected. What is in store for the common man and you in this Union Budget (Budget 2026)? Find out: The company's earnings are showing signs of recovery after the last few difficult years. EBITDA has steadily improved this year. It was ₹380 crore in Q1CY25, rising to ₹627 crore by Q3CY25. However, annual performance has fluctuated significantly over the past years. EBITDA was ₹3,537 crore in 2022, falling to ₹933 crore in 2023. It then rose again to ₹1,274 crore in 2024. The stock is still considered attractive from a valuation perspective. The stock is trading at around 0.7 times book value and approximately 5 times EV/EBITDA. Overall, the stock has benefited from positive sentiment and improved valuations. What the company said: Regarding the stock's rally and high volumes, the company, in a response to the markets at the end of last year, stated that the stock's rally is entirely market-driven, and that they have published all relevant information, and that there is no price-sensitive information that has not been released. (Disclaimer: The opinions and advice expressed on CNBC TV18 Hindi/CNBC Awaaz are the personal opinions of the experts and brokerage firms; the website or management is not responsible for them. Please consult your financial advisor or certified expert before investing.)
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