InvestorQ : Why has the stock of Rain Industries fallen so sharply in recent days?
Rutuja Nigam made post

Why has the stock of Rain Industries fallen so sharply in recent days?

3 weeks ago

Rain Industries stock had fallen by more than 8% on Friday to Rs184 per share. The sharp fall came after its European unit, Rain Carbon, announced the temporary closure of its European unit. Rain is into a fairly energy intensive business and at the current exorbitant rates at which energy is available in the EU region, it is almost impossible for most companies to even survive. The costs are just going through the roof after Russia cut the Nord Strom 1 pipeline that supplies gas to the whole of Europe region.

However, Rain Industries has a much larger exposure to Europe and that is the worry. For instance, while the Rain Carbon unit has been shut down for now, the company is planning to develop other energy-related plans for other European production units so that it can overcome potential natural gas shortages and price spikes in a highly charged and volatile environment. The situation could just get worse in the coming winter months when gas demand typically peaks across the Europe region.

Rain Carbon, which is a 100% subsidiary unit of Rain Industries, is a leading producer of carbon-based products and advanced materials. Here is what the company does. The carbon business segment converts by-products of oil refining and steel production into high-value, carbon-based products that will be critical for global industries. The other advanced materials business segment extends the value chain of carbon processing through downstream transformation of carbon output and other raw materials.