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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rain Industries's annualized net income for the quarter that ended in Dec. 2025 was ₹135 Mil. Rain Industries's average shareholder tangible equity for the quarter that ended in Dec. 2025 was ₹4,359 Mil. Therefore, Rain Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 3.10%.
The historical rank and industry rank for Rain Industries's Return-on-Tangible-Equity or its related term are showing as below:
NSE:RAIN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -77.24 Med: -30.56 Max: 214.93
Current: 3.1
During the past 13 years, Rain Industries's highest Return-on-Tangible-Equity was 214.93%. The lowest was -77.24%. And the median was -30.56%.
NSE:RAIN's Return-on-Tangible-Equity is ranked worse than 63.46% of 1568
companies
in the Chemicals industry
Industry Median: 5.785
vs NSE:RAIN: 3.10
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Rain Industries Return-on-Tangible-Equity Related Terms
Rain Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rain Industries's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:RAIN vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Rain Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rain Industries Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Rain Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rain Industries's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is one times the annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 2.80% mean?
Rain Industries (NSE:RAIN) has a Return-on-Tangible-Equity of 2.80% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rain Industries and its competitors. According to the industry distribution chart, Rain Industries ranks #995 out of 1568 companies in the Chemicals industry, placing it in the top 63.5%.
Is Rain Industries' Return-on-Tangible-Equity too high?
Rain Industries' current Return-on-Tangible-Equity is 2.80%. The Chemicals industry median Return-on-Tangible-Equity is 5.79. Rain Industries' value of 2.80% is 51.6% below this industry median. Based on the distribution chart, Rain Industries ranks #995 out of 1568 companies in the Chemicals industry, which is below the industry midpoint. Overall, Rain Industries has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rain Industries' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Rain Industries ranks #995 out of 1568 companies for Return-on-Tangible-Equity. This places Rain Industries in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.79. Rain Industries' value of 2.80% is 51.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.79, based on 1,568 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rain Industries's current Return-on-Tangible-Equity of 2.80% is 51.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rain Industries and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rain Industries's current Return-on-Tangible-Equity is 2.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rain Industries stock overvalued right now?
Based on GuruFocus' analysis, Rain Industries (NSE:RAIN) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹153.31, compared to a current price of ₹216.64 — trading 41.3% above its estimated fair value. The current Return-on-Tangible-Equity is 2.80% and 51.6% below the Chemicals industry median of 5.79. Rain Industries' overall GF Score™ is 62/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Rain Industries (NSE:RAIN), the current Return-on-Tangible-Equity is 2.80% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rain Industries (NSE:RAIN) Overvalued in 2026?
Based on GuruFocus' analysis, Rain Industries stock appears to be overvalued.
The current stock price of ₹216.64 is trading 41.3% above its estimated GF Value™ of ₹153.31.
GuruFocus considers Rain Industries to be Significantly Overvalued.
Key valuation signals for NSE:RAIN:
Return-on-Tangible-Equity: 2.80%
GF Value™: ₹153.31 vs. price of ₹216.64 (41.3% above fair value)
Industry Position: 51.6% below the Chemicals median (#995 of 1568)
No single metric tells the full story. See the NSE:RAIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rain Industries Ltd engages in the production of cement and other related products. The group operates through three segments namely Carbon Products, Advance Materials, and Cement. The product portfolio of the group consists of Calcined Petroleum Coke, Green Petroleum Coke, Coal Tar Pitch, Co-generated Energy, and other derivatives of coal tar distillation. In addition, it also focuses on the downstream operations of coal tar distillation and modifiers and is also involved in the manufacture and sale of cement. Geographically, the business of the firm is spread across the region of Europe, the United States, North America, Asia, and others.
62GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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