RAINBOW - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | RAINBOW | Market Cap | 11,323 Cr. | Current Price | 1,115 ₹ | High / Low | 1,646 ₹ |
| Stock P/E | 46.2 | Book Value | 156 ₹ | Dividend Yield | 0.27 % | ROCE | 18.3 % |
| ROE | 16.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,270 ₹ | DMA 200 | 1,362 ₹ |
| Chg in FII Hold | -2.61 % | Chg in DII Hold | 2.03 % | PAT Qtr | 65.8 Cr. | PAT Prev Qtr | 73.2 Cr. |
| RSI | 18.9 | MACD | -47.0 | Volume | 4,56,359 | Avg Vol 1Wk | 2,09,627 |
| Low price | 1,110 ₹ | High price | 1,646 ₹ | PEG Ratio | 2.59 | Debt to equity | 0.46 |
| 52w Index | 0.76 % | Qtr Profit Var | -1.73 % | EPS | 24.2 ₹ | Industry PE | 44.0 |
📊 Analysis: RAINBOW trades at a premium valuation (P/E 46.2 vs industry 44.0) with moderate efficiency metrics (ROCE 18.3%, ROE 16.7%). EPS at ₹24.2 is modest relative to price, and dividend yield at 0.27% is negligible. The current price (₹1,115) is well below both 50 DMA (₹1,270) and 200 DMA (₹1,362), reflecting strong technical weakness. RSI at 18.9 indicates oversold conditions, while MACD (-47.0) confirms bearish momentum. Quarterly PAT declined (₹73.2 Cr → ₹65.8 Cr), showing earnings pressure. Despite DII inflows (+2.03%) and manageable debt-to-equity (0.46), weak technicals and stretched valuations make this a risky swing trade candidate.
💡 Optimal Entry Price: Around ₹1,100–₹1,120 (near support zone close to 52-week low).
🚪 Exit Strategy: If already holding, consider booking profits near ₹1,250–₹1,270 (50 DMA resistance). Exit below ₹1,100 if weakness persists to protect capital.
✅ Positive
- ROCE (18.3%) and ROE (16.7%) show moderate efficiency.
- DII holdings increased (+2.03%).
- Debt-to-equity ratio at 0.46 is manageable.
- Strong trading volume above weekly average indicates investor activity.
⚠️ Limitation
- Valuation premium (P/E 46.2 vs industry 44.0).
- Dividend yield negligible at 0.27%.
- Price trading below both 50 DMA and 200 DMA.
- MACD indicates bearish trend.
📉 Company Negative News
- Quarterly PAT declined (-1.73%).
- FII holdings decreased (-2.61%).
- 52-week index at 0.76% shows very weak price performance.
📈 Company Positive News
- DII inflows support investor confidence.
- Volume surge indicates strong market participation.
🏭 Industry
- Industry P/E at 44.0 highlights RAINBOW’s premium valuation.
- Healthcare and hospital sector benefits from rising demand for medical services and infrastructure expansion.
🔎 Conclusion
RAINBOW is fundamentally decent with moderate efficiency and manageable debt, but stretched valuations, declining profitability, and bearish technical signals limit swing trade potential. Entry near ₹1,100–₹1,120 may offer short-term opportunities, with exit near ₹1,250–₹1,270. Risk management is crucial due to oversold RSI and weak price performance.