Why is Rainbow Foundations Ltd ?
1
With HIgh Debt (Debt-Equity Ratio at 6.87 times)- the company has a Weak Long Term Fundamental Strength
- High Debt Company with a Debt to Equity ratio (avg) at 5.50 times
- The company has been able to generate a Return on Equity (avg) of 4.71% signifying low profitability per unit of shareholders funds
2
Flat results in Sep 25
- NET SALES(Q) At Rs 34.79 cr has Fallen at -20.3% (vs previous 4Q average)
- INTEREST(9M) At Rs 26.32 cr has Grown at 30.49%
- DEBT-EQUITY RATIO(HY) Highest at 6.99 times
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rainbow Foundat. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Rainbow Foundat.
131.17%
2.34
54.55%
Sensex
4.31%
0.45
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
44.21%
EBIT Growth (5y)
46.51%
EBIT to Interest (avg)
0.96
Debt to EBITDA (avg)
25.32
Net Debt to Equity (avg)
6.87
Sales to Capital Employed (avg)
0.20
Tax Ratio
24.79%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.52%
ROE (avg)
4.71%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
40
Price to Book Value
3.48
EV to EBIT
19.64
EV to EBITDA
19.47
EV to Capital Employed
1.31
EV to Sales
4.85
PEG Ratio
0.95
Dividend Yield
NA
ROCE (Latest)
6.69%
ROE (Latest)
9.54%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
Technical Movement
8What is working for the Company
NET SALES(Latest six months)
At Rs 85.13 cr has Grown at 30.77%
INVENTORY TURNOVER RATIO(HY)
Highest at 0.27 times
-8What is not working for the Company
NET SALES(Q)
At Rs 34.79 cr has Fallen at -20.3% (vs previous 4Q average
INTEREST(9M)
At Rs 26.32 cr has Grown at 30.49%
DEBT-EQUITY RATIO(HY)
Highest at 6.99 times
PBT LESS OI(Q)
Lowest at Rs 1.38 cr.
EPS(Q)
Lowest at Rs 0.23
Loading Valuation Snapshot...
Here's what is working for Rainbow Foundat.
Inventory Turnover Ratio- Half Yearly
Highest at 0.27 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Rainbow Foundat.
Net Sales - Quarterly
At Rs 34.79 cr has Fallen at -20.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 43.65 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Interest - Nine Monthly
At Rs 26.32 cr has Grown at 30.49%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 1.38 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.23
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 6.99 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






