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Rainbow Foundations Ltd. Stock Analysis

Small Cap
Evaluated by 60 users | BSE: 531694 | NSE: |
Construction - Real Estate
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...

Analysis of Financial Track Record

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 4.3%6.45%5.8%6.23%5.86%4.58%3.93%5.51%7.75%2.56%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8.6813.21414.631.229.746.455.437.8
Y-o-Y Gr. Rt.--7%64.9%6.2%4%114.2%-4.8%56.2%19.4%-31.8%
Adjusted EPS (Rs.) 0.140.840.630.911.391.122.32.882.731.14
Y-o-Y Gr. Rt.-500%-25%44.4%52.8%-19.4%105.4%25.2%-5.2%-58.2%
Book Value per Share (Rs.) 14.8715.3516.3417.2518.7819.8822.2325.1327.8529.02
Adjusted Net Profit 0.10.50.40.50.80.61.31.61.50.6
Net Op. Cash Flow (Rs. Cr.) -2-51.65.9-38.6-33.2-51.733.219.2-95.1
Debt to Cash Flow from Ops -4.37-3.2111.172.33-1.42-2.74-2.943.826.07-1.79
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Rainbow Foundations Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17.9%21%8.3%-31.8%
Adjusted EPS 26.2%-3.9%-20.9%-58.2%
Book Value per Share 7.79.19.34.2
Share Price 5.4% -4.1% -11.5% -27.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 0.935.493.915.417.735.7710.9312.1510.291.64
Operating Profit Margin (%) 9.3124.8415.2214.6317.2714.3821.9424.8925.8713.55
Net Profit Margin (%) 0.885.792.623.575.271.974.273.422.711.67
Debt to Equity 1.061.851.951.445.298.312.419.167.572.76
Working Capital Days 9001,3801,2981,7202,2991,3701,8441,3131,0291,936
Cash Conversion Cycle 8631,1077644188047981,5581,1068231,570
Entity Percentage Holding
Promoters 33.57%
Non-Institutions 66.43%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Rainbow Foundations Ltd.'s performance infers:

Rainbow Foundations Ltd. earnings have declined by -3.9%, whereas share price has depreciated -4.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Rainbow Foundations Ltd. share prices over the last 10 years. Here is what we found out:

Rainbow Foundations Ltd. share price has depreciated 1.8% annually over the past ten years.

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

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).

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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