RAINBOW - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | RAINBOW | Market Cap | 14,740 Cr. | Current Price | 1,450 ₹ | High / Low | 1,646 ₹ |
| Stock P/E | 58.7 | Book Value | 166 ₹ | Dividend Yield | 0.24 % | ROCE | 17.3 % |
| ROE | 15.8 % | Face Value | 10.0 ₹ | DMA 50 | 1,322 ₹ | DMA 200 | 1,308 ₹ |
| Chg in FII Hold | -2.00 % | Chg in DII Hold | 1.63 % | PAT Qtr | 60.4 Cr. | PAT Prev Qtr | 65.8 Cr. |
| RSI | 74.9 | MACD | 31.7 | Volume | 87,996 | Avg Vol 1Wk | 1,46,241 |
| Low price | 1,009 ₹ | High price | 1,646 ₹ | PEG Ratio | 9.33 | Debt to equity | 0.47 |
| 52w Index | 69.3 % | Qtr Profit Var | 10.7 % | EPS | 24.6 ₹ | Industry PE | 45.6 |
📊 RAINBOW shows decent fundamentals with ROCE (17.3%) and ROE (15.8%), supported by moderate debt-to-equity (0.47). Quarterly PAT growth (+10.7%) is positive, though slightly lower than the previous quarter. Technicals are overheated with RSI at 74.9 (overbought) and MACD strongly positive (31.7), suggesting bullish momentum but limited upside. Valuation is stretched with P/E (58.7 vs industry 45.6) and PEG ratio (9.33). The stock trades well above both 50 DMA (1,322 ₹) and 200 DMA (1,308 ₹), indicating strong momentum but risk of correction.
💡 Optimal Entry Price: Around 1,300–1,310 ₹ (near DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near 1,630–1,645 ₹ (resistance zone) or trail stop-loss at 1,380 ₹ to protect downside.
🌟 Positive
- 📈 Strong ROCE (17.3%) and ROE (15.8%).
- 💰 Moderate debt-to-equity ratio (0.47).
- 📊 PAT growth (+10.7%) highlights earnings consistency.
- 📉 DII holdings increased (+1.63%), showing domestic institutional confidence.
⚠️ Limitation
- 📌 High P/E (58.7) compared to industry average (45.6).
- 📌 PEG ratio (9.33) reflects expensive growth valuation.
- 📌 RSI at 74.9 indicates overbought territory.
- 📌 FII holdings decreased (-2.00%), showing reduced foreign investor interest.
📰 Company Negative News
- No major negative news reported, but stretched valuations and reduced foreign investor interest are concerns.
📰 Company Positive News
- Strong quarterly earnings with PAT growth of 10.7%.
- Domestic institutions increasing stake, signaling confidence.
🏭 Industry
- Industry P/E at 45.6, lower than RAINBOW’s 58.7, highlighting premium valuation.
- Sector growth supported by healthcare and hospital demand in India.
✅ Conclusion
RAINBOW is fundamentally strong with efficient profitability and moderate debt, making it moderately attractive for swing trading. The current momentum is bullish, but valuations are stretched. Optimal entry is near 1,300–1,310 ₹, with exit around 1,630–1,645 ₹ if already holding. Caution is advised due to high P/E and near resistance levels.
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