ScoreWhy is Rainbow Foundations Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
- The company has been able to generate a Return on Equity (avg) of 3.24% signifying low profitability per unit of shareholders funds
2
The company has declared Positive results for the last 7 consecutive quarters
- PAT(9M) At Rs 4.12 cr has Grown at 329.17%
- NET SALES(9M) Higher at Rs 99.28 cr
- PBDIT(Q) Highest at Rs 9.31 cr.
3
Stock is technically in a Mildly Bullish range
- The stocks MACD and KST technical factors are also Bullish
4
With ROCE of 6.3, it has a Very Attractive valuation with a 1.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 142.24%, its profits have risen by 653% ; the PEG ratio of the company is 0
5
Majority shareholders : Non Institution
6
Market Beating Performance
- Even though the market (BSE 500) has generated negative returns of -1.01% in the last 1 year, the stock has been able to generate 142.24% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Rainbow Foundat. should be less than 10%
- Overall Portfolio exposure to Construction - Real Estate should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction - Real Estate)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Rainbow Foundat. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Rainbow Foundat.
140.39%
2.65
53.76%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
28.48%
EBIT Growth (5y)
92.88%
EBIT to Interest (avg)
0.90
Debt to EBITDA (avg)
36.35
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.15
Tax Ratio
20.38%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.64%
ROE (avg)
3.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
36
Price to Book Value
2.63
EV to EBIT
14.31
EV to EBITDA
14.12
EV to Capital Employed
1.33
EV to Sales
3.64
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
6.32%
ROE (Latest)
9.82%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
PAT(9M)
At Rs 4.12 cr has Grown at 329.17%
NET SALES(9M)
Higher at Rs 99.28 cr
PBDIT(Q)
Highest at Rs 9.31 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 27.24%
-1What is not working for the Company
INTEREST(Q)
Highest at Rs 7.66 cr
Loading Valuation Snapshot...
Here's what is working for Rainbow Foundat.
Profit After Tax (PAT) - Half Yearly
At Rs 3.04 cr has Grown at 508.00%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 34.18 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 9.31 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 27.24%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Here's what is not working for Rainbow Foundat.
Interest - Quarterly
Highest at Rs 7.66 cr
in the last five quarters and Increased by 21.39 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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