Rainbow Foundations Ltd - Stock Valuation and Financial Performance

BSE: 531694 | NSE: | Construction - Real Estate | Small Cap

Rainbow Foundation Share Price

14.13 0.67 4.98%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Rainbow Foundation

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Rainbow Foundations stock performance -

mw4me loader
P/E Ratio (SA):
107.55
Market Cap:
66.8 Cr.
52-wk low:
7.6
52-wk high:
19.7

Is Rainbow Foundations Ltd an attractive stock to invest in?

1. Is Rainbow Foundations Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Rainbow Foundations Ltd is a below average quality company.

2. Is Rainbow Foundations Ltd undervalued or overvalued?

The key valuation ratios of Rainbow Foundations Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Rainbow Foundations Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rainbow Foundations Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Rainbow Foundation:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rainbow Foundations Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 5.9%4.6%3.9%5.5%7.8%3.3%4%3.3%1.7%2.9%-
Value Creation
Index
-0.6-0.7-0.7-0.6-0.5-0.8-0.7-0.8-0.9-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 14.631.229.746.455.437.825.934.63640.276
Sales YoY Gr.-114.2%-4.8%56.2%19.4%-31.8%-31.5%33.9%4%11.7%-
Adj EPS 0.70.51.11.41.30.51.510.50.30.1
YoY Gr.--20%107.7%25%-5.2%-57.8%168.5%-33.1%-45.4%-49.1%-
BVPS (₹) 8.89.310.411.813.113.6151634.713.914.1
Adj Net
Profit
0.80.61.31.61.50.61.71.10.31.41
Cash Flow from Ops. -38.6-33.2-51.733.219.2-53.413.925.2-39.2-112-
Debt/CF from Ops. -1.4-2.7-2.93.86.1-1.669.2-7.4-3.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12%-6.2%15.9%11.7%
Adj EPS -9.3%-26.8%-42.9%-49.1%
BVPS5.2%1.3%-2.6%-59.9%
Share Price 12.3% 15.9% 58.3% 62.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
7.75.810.912.210.31.62.72.81.53.10.9
Op. Profit
Mgn %
17.314.421.924.925.913.619.518.511.425.223.8
Net Profit
Mgn %
5.324.33.42.71.76.63.30.83.40.9
Debt to
Equity
5.38.312.49.27.61.41.312.3155.6-
Working Cap
Days
2,2991,3701,8441,3131,0291,9373,7113,0403,2643,9191,383
Cash Conv.
Cycle
8047981,5581,1068231,5492,0471,9192,0372,565220

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 15.90%

Debt to equity has declined versus last 3 years average to 5.55

Sales growth is good in last 4 quarters at 294.88%

Return on Equity has declined versus last 3 years average to 0.90%

Net Profit has been subdued in last 3 years -42.90%

Latest Financials - Rainbow Foundations Ltd.

Standalone Consolidated
TTM EPS (₹) 0.1 -
TTM Sales (₹ Cr.) 76.1 -
BVPS (₹.) 14.1 -
Reserves (₹ Cr.) 20 -
P/BV 0.96 -
PE 107.55 -
From the Market
52 Week Low / High (₹) 7.60 / 19.65
All Time Low / High (₹) 1.72 / 21.25
Market Cap (₹ Cr.) 66.8
Equity (₹ Cr.) 49.6
Face Value (₹) 10
Industry PE 76.3

Management X-Ray of Rainbow Foundation:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Rainbow Foundation

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales14.5731.2129.7146.4055.3837.7625.8534.6236.0240.24
Operating Expenses 12.0526.7223.1934.8541.0532.6420.8228.2331.9230.10
Manufacturing Costs0.130.110.120.120.120.160.450.210.220.53
Material Costs11.4325.9122.3633.8540.1031.1618.7426.6729.4927.41
Employee Cost 0.320.370.460.600.530.570.710.840.850.95
Other Costs 0.170.340.250.280.300.760.920.511.361.20
Operating Profit 2.524.496.5211.5514.335.115.036.394.1010.14
Operating Profit Margin (%) 17.3%14.4%21.9%24.9%25.9%13.5%19.5%18.4%11.4%25.2%
Other Income 1.401.101.200.710.951.903.313.063.545.33
Interest 2.604.585.669.7412.935.745.927.786.2713.52
Depreciation 0.060.040.030.080.090.120.090.140.110.11
Exceptional Items 0000000000
Profit Before Tax 1.250.972.032.442.251.162.331.521.251.84
Tax 0.410.350.730.850.750.520.620.380.950.49
Profit After Tax 0.840.611.301.591.500.641.701.140.301.35
PAT Margin (%) 5.8%2.0%4.4%3.4%2.7%1.7%6.6%3.3%0.8%3.4%
Adjusted EPS (₹)0.70.51.11.41.30.61.51.00.50.3
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 10.3510.9612.2613.8515.3661.5063.2018.8419.1469
Share Capital 5.515.515.515.515.5151.0151.015.515.5149.62
Reserves 4.845.446.748.349.8410.4812.1913.3213.6219.38
Minority Interest0000000000
Debt54.7790.90152.13126.83116.1887.7583.12231.32240.98347.40
Long Term Debt0.030.010.160.2400.2212.5259.0950.7480.84
Short Term Debt54.7590.89151.96126.59116.1887.5370.60172.22190.25266.56
Trade Payables34.5122.178.7219.3115.7216.7728.6750.0134.0270.37
Others Liabilities 9.635.026.376.235.8485.19102.922.7151.8143.84
Total Liabilities 109.26129.05179.47166.23153.10251.21277.91302.87345.94530.61

Fixed Assets

Gross Block0.960.971.091.431.821.742.382.401.431.34
Accumulated Depreciation0.630.670.590.600.660.690.780.9300
Net Fixed Assets0.330.290.490.831.161.051.591.471.431.34
CWIP 0000000000
Investments 0000.010.010.0100.430.510.51
Inventories76.02115.33149.20134.51140.88195.09214.84237.60265.70382.70
Trade Receivables3.036.5515.6420.065.275.867.233.161.6244.38
Cash Equivalents 2.151.326.134.500.710.610.280.320.348.40
Others Assets27.725.558.026.315.0748.5953.9759.8876.3593.29
Total Assets 109.26129.05179.47166.23153.10251.21277.91302.87345.94530.61

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -38.63-33.16-51.6733.1719.15-53.4313.9225.22-39.15-111.60
PBT 1.250.972.032.442.251.162.331.521.251.84
Adjustment 1.273.824.559.1511.963.992.544.862.898.71
Changes in Working Capital -40.88-37.53-57.9122.666.04-58.279.6119.18-42.37-121.68
Tax Paid -0.27-0.43-0.33-1.09-1.11-0.32-0.56-0.35-0.92-0.47
Cash Flow From Investing Activity 1.360.760.860.240.47-40.17-3.92-1.86-10.48-10.20
Capex 0.09-0.01-0.24-0.40-0.420.01-0.64-0.02-0.07-0.02
Net Investments 0000000-0.43-0.060
Others 1.270.771.110.650.89-40.18-3.28-1.41-10.35-10.18
Cash Flow From Financing Activity 38.5231.5855.61-35.03-23.4293.50-10.33-23.3249.65129.86
Net Proceeds from Shares 0000045.5000048.52
Net Proceeds from Borrowing 00000012.301.0838.3850.64
Interest Paid -2.57-4.55-5.62-9.74-12.76-5.71-5.70-7.74-6.27-13.52
Dividend Paid 0000000000
Others 41.0936.1361.22-25.30-10.6553.71-16.93-16.6517.5344.22
Net Cash Flow 1.25-0.834.80-1.62-3.79-0.10-0.330.050.028.06
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)8.455.7711.212.2210.294.0910.16.261.583.07
ROCE (%)8.736.655.777.9911.154.925.584.692.74.05
Asset Turnover Ratio0.160.260.190.270.350.190.10.120.110.09
PAT to CFO Conversion(x)-45.99-54.36-39.7520.8612.77-83.488.1922.12-130.5-82.67
Working Capital Days
Receivable Days78561361408454925524209
Inventory Days1,6871,1191,6251,1169081,6242,8942,3852,5502,941
Payable Days1,214399252151159190442538520695

Rainbow Foundations Ltd Stock News

Rainbow Foundations Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rainbow Foundation on 28-Mar-2024 16:01 is ₹14.13.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Rainbow Foundation stood at ₹66.79.
The latest P/E ratio of Rainbow Foundation as of 28-Mar-2024 16:01 is 107.5.
The latest P/B ratio of Rainbow Foundation as of 28-Mar-2024 16:01 is 0.96.
The 52-week high of Rainbow Foundation is ₹19.65 and the 52-week low is ₹7.60.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rainbow Foundation is ₹76.09 ( Cr.) .

About Rainbow Foundations Ltd

Rainbow Foundation (RFL), established in 1994, is a gigantic construction company with an enviable track record in the real estate scenario of Chennai. The innumerable residential and commercial projects that are executed successfully, have added to its reputation and ranks it among the frontrunners.

The directors of this company have been property promoters in their individual capacity and have a combined exposure of nearly a decade in this industry. They joined hands to pool in their project experiences and building skills and incorporated RFL as a new enterprise in 1994 with sole purpose of identifying and buying highly potential real estates with the objective of developing attractive commercial and residential apartments/Buildings complexes and selling them profitably.

The prime properties of the company include Rainbow Arcade, Rainbow Praveen, Rainbow Nirav, Rainbow Plaza, Rainbow Court, and dozen such commercially attractive properties, which are located in and around Chennai Metropolis

The company has developed 4.4 million square feet of property. Rainbow Foundation’s registered office is located at Subramanian Buildings No 1, Club House Road, Chennai 600002.

The shares of company are listed on Madras Stock Exchange and Bombay Stock Exchange.

Completed Projects - Rainbow Foundation has handled projects like Rainbow Arcade (T Nagar), Rainbow Raj Bhavan (Kilpauk), Rainbow Nirav (West Mamballam) and Rainbow Plaza (Purasaivakkam)

Ongoing Projects - The company is currently working on projects namely Rainbow Abhay (Kilpauk), Rainbow Nest (Perungalathur), Rainbow Courtyard (Velachery), Rainbow Riddhi (Selaiyur) and Navin Nagar (Arakkonam).

Upcoming projects - RFL’s upcoming portfolio comprise Rainbow Park (Raja Anamalai Puram), Independent Houses (Guduvanchery) and Rainbow Towers (General Peters Road).

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