RAINBOW - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.1

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📊 Fundamental Analysis Report

• Stock Code: RAINBOW
• Market Cap: ₹13,904 Cr
• Current Price: ₹1,369
• 52W High/Low: ₹1,710 / ₹1,206
• EPS: ₹24.7
• Stock P/E: 55.4 vs Industry P/E: 59.6 ✅
• PEG Ratio: 3.11 ❗ (Overvalued vs Growth)
• Book Value: ₹147 | P/B Ratio: ~9.31 ❗
• ROE: 16.7% | ROCE: 18.3% 🔶
• Debt to Equity: 0.49 🟡 (Moderate Leverage)
• Dividend Yield: 0.22% 🚫
• Quarterly PAT: ₹51.7 Cr (↓5.1%)
• RSI: 52.2 | MACD: -9.15 📉

✅ Positive

• Strong ROE and ROCE indicate efficient capital deployment and profitability.
• Moderate debt-to-equity ratio supports financial flexibility.
• Quarterly profit variation of 33.5% YoY reflects healthy earnings momentum.
• DII holding increased by 2.02%, showing strong domestic institutional confidence.

⚠️ Limitation

• High PEG and P/B ratios suggest valuation is stretched relative to growth and assets.
• Dividend yield is low, offering limited passive income.
• MACD negative and volume below average indicate weak short-term momentum.
• FII holding declined by 1.75%, signaling reduced foreign investor interest.

📉 Company Negative News

• Sequential PAT declined slightly from ₹54.5 Cr to ₹51.7 Cr.
• Technical indicators suggest consolidation or mild bearish sentiment.

📈 Company Positive News

• Strong YoY profit growth and consistent operational performance.
• Stock has gained 32.4% over the past year, reflecting investor optimism.

🏦 Industry

• RAINBOW operates in the healthcare and hospital services sector.
• Industry P/E of 59.6 is slightly higher, suggesting RAINBOW trades near sector average.
• Sector benefits from rising healthcare demand, medical infrastructure expansion, and demographic tailwinds.

🧭 Conclusion

• Entry Zone: ₹1,320–₹1,360 (near support and RSI neutral)
• Long-Term View: Strong fundamentals and sector growth support long-term holding. Accumulate on dips while monitoring valuation and technical indicators.