RAINBOW - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📈 Positive

• 📊 Strong fundamentals: ROCE of 18.3% and ROE of 16.7% indicate efficient capital deployment.
• 📈 EPS of ₹24.7 and consistent PAT (₹51.7 Cr.) reflect earnings stability.
• 📈 Price is near DMA 50 (₹1,400) and DMA 200 (₹1,423), suggesting a potential bounce zone.
• 📈 RSI at 55.2 indicates neutral-to-positive momentum.
• 📈 Volume (2.64 lakh) is above 1-week average (1.40 lakh), showing increasing market interest.
• 📈 DII holding increased by 2.02%, signaling strong domestic institutional confidence.

⚠️ Limitation

• 📉 MACD at -3.91 suggests short-term bearish crossover.
• 📉 P/E of 56.5 vs industry P/E of 57.2 indicates fair-to-expensive valuation.
• 📉 PEG ratio of 3.17 implies overvaluation relative to growth.
• 📉 Dividend yield of 0.22% offers minimal passive income.
• 📉 FII holding declined by 1.75%, showing reduced foreign investor interest.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over high valuations and margin pressures in the pediatric healthcare segment.

✅ Company Positive News

• 🏥 RAINBOW continues to expand its hospital network and benefit from rising demand for specialized child and maternal care.
• 📈 Strong brand equity and operational metrics support long-term growth visibility.

🏦 Industry

• 🩺 Operates in the healthcare and hospital services sector, which is defensive and benefits from rising health awareness and infrastructure spending.
• 📊 Industry P/E of 57.2 reflects premium valuation and growth expectations.

🧾 Conclusion

• 📈 RAINBOW is technically stable and fundamentally strong, making it a good candidate for swing trading with valuation caution.
• 📍 Optimal entry: ₹1,375–₹1,385 (near support and slightly below DMA 50).
• 🚪 Exit if held: ₹1,440–₹1,460 (near DMA 200 and resistance zone) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of MACD and institutional flows.

I can also help you compare RAINBOW’s setup with peers like KIMS or Narayana Health to spot relative strength opportunities.