⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RAINBOW - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | RAINBOW | Market Cap | 12,790 Cr. | Current Price | 1,261 ₹ | High / Low | 1,646 ₹ |
| Stock P/E | 52.2 | Book Value | 156 ₹ | Dividend Yield | 0.24 % | ROCE | 18.3 % |
| ROE | 16.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,224 ₹ | DMA 200 | 1,293 ₹ |
| Chg in FII Hold | -2.00 % | Chg in DII Hold | 1.63 % | PAT Qtr | 65.8 Cr. | PAT Prev Qtr | 73.2 Cr. |
| RSI | 56.1 | MACD | 18.2 | Volume | 86,319 | Avg Vol 1Wk | 1,04,656 |
| Low price | 1,009 ₹ | High price | 1,646 ₹ | PEG Ratio | 2.93 | Debt to equity | 0.46 |
| 52w Index | 39.6 % | Qtr Profit Var | -1.73 % | EPS | 24.2 ₹ | Industry PE | 48.2 |
RAINBOW shows solid fundamentals with strong ROCE (18.3%) and ROE (16.7%), moderate debt-to-equity (0.46), and decent institutional support from DIIs (+1.63%). However, the stock is trading at a high P/E (52.2) compared to industry average (48.2), with declining quarterly profits (-1.73%). RSI at 56.1 indicates neutral momentum. Optimal entry would be around ₹1,220–₹1,240 near the 50 DMA. If already holding, consider exiting near ₹1,300–₹1,320 to secure gains before resistance.
✅ Positive
- Strong ROCE (18.3%) and ROE (16.7%) show efficient capital use.
- Debt-to-equity ratio of 0.46 is manageable.
- DII holdings increased by 1.63%, reflecting domestic investor confidence.
- EPS of ₹24.2 with PEG ratio of 2.93 suggests moderate valuation relative to growth.
⚠️ Limitation
- P/E of 52.2 is higher than industry average of 48.2, suggesting premium valuation.
- Dividend yield of 0.24% is very low.
- Quarterly PAT declined from ₹73.2 Cr to ₹65.8 Cr (-1.73%).
- FII holdings decreased by 2.00%, showing reduced foreign investor confidence.
📰 Company Negative News
- No major negative news reported, but earnings decline raises concerns.
🌟 Company Positive News
- Strong institutional support from DIIs (+1.63%).
- Stable profitability despite minor quarterly decline.
🏭 Industry
- Industry P/E at 48.2, slightly lower than RAINBOW’s 52.2, suggesting overvaluation.
- Healthcare and hospital sector benefiting from rising demand and expansion projects.
📌 Conclusion
RAINBOW is fundamentally strong with efficient returns and manageable debt, but high valuation and declining profits limit upside. Best swing trade entry is around ₹1,220–₹1,240. If already holding, exit near ₹1,300–₹1,320 to secure gains before resistance.