RAINBOW - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis: Rainbow Children's Medicare Ltd. (RAINBOW)

Swing Trade Rating: 3.4

📉 Technical Overview

Current Price: ₹1,525 sits slightly above 50 DMA (₹1,491) and 200 DMA (₹1,421) — maintaining bullish structure.

RSI: 50.4 — flat, indecisive; not a strong entry signal yet.

MACD: 17.6 — positive but cooling; watch for trend continuation.

Volume far below 1-week average — short-term trader interest is subdued.

📊 Fundamental Check

Valuation

P/E at 60.3, higher than industry average (69.2) — high, but not extreme.

PEG ratio of 3.03 — indicates expensive relative to growth.

Profitability

ROCE at 18.7%, ROE at 17.4% — solid metrics; reflects operational strength.

EPS: ₹25.4 — respectable for this price tier.

PAT dipped slightly QoQ (₹56.3 Cr → ₹53.5 Cr), but profit variance of 35.3% shows longer-term improvement.

Debt & Dividend

Debt-to-equity: 0.52 — well-managed capital structure.

Dividend Yield: 0.20% — minimal impact on swing consideration.

Institutional Sentiment

FII slightly trimmed (−0.09%), DII modestly added (+0.13%) — net neutral outlook.

🎯 Optimal Entry Price

Buy Zone: ₹1,490–₹1,510

Near 50 DMA offers safer risk-reward entry.

Watch for RSI pushing past 54 with consistent volume uptick.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹1,680–₹1,700

Near recent highs; ideal for profit booking.

Stop-Loss: ₹1,460

Slightly below DMA support; limits downside if trend reverses.

RAINBOW has a moderate technical setup supported by strong fundamentals and improving long-term earnings momentum. However, subdued short-term trader volume and elevated valuation temper the swing potential. Might be worth tracking for momentum confirmation — or I can help you scan mid-cap healthcare peers showing stronger RSI/MACD alignment. 🩺📈

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