What is CAGR? What does CAGR table indicate for Rainbow Foundations Ltd?

Compounded average growth rate (CAGR) measures the average annual growth rate compounded year-on-year over a period of time.

Rainbow Foundations Ltd Stock Analysis

Q: Is Rainbow Foundations Ltd a good quality company?

MoneyWorks4Me analysed the past 10-year performance of Rainbow Foundations Ltd and arrived at the following conclusion.

Small Cap

Evaluated by 65 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...

10 Year X-Ray

Standalone basis Standalone basis P Consolidated basis

Analysis of Financial Track Record

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

What is a Financial Track Record? How to read this chart in order to understand the data present here?

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'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Capital Employed	6.45%	5.8%	6.23%	5.86%	4.58%	3.93%	5.51%	7.75%	3.31%	3.95%

Growth Parameters	Growth Parameters Colour Code Guide

Net Sales (Rs. Cr.)	8	13.2	14	14.6	31.2	29.7	46.4	55.4	37.8	25.9
Y-o-Y Gr. Rt.	-	64.9%	6.2%	4%	114.2%	-4.8%	56.2%	19.4%	-31.8%	-31.5%
Adjusted EPS (Rs.)	0.84	0.63	0.91	1.39	1.12	2.3	2.88	2.73	1.14	3.09
Y-o-Y Gr. Rt.	-	-25%	44.4%	52.8%	-19.4%	105.4%	25.2%	-5.2%	-58.2%	171.1%
Book Value per Share (Rs.)	15.35	16.34	17.25	18.78	19.88	22.23	25.13	27.85	29.02	32.1
Adjusted Net Profit	0.5	0.4	0.5	0.8	0.6	1.3	1.6	1.5	0.6	1.7
Net Op. Cash Flow (Rs. Cr.)	-5	1.6	5.9	-38.6	-33.2	-51.7	33.2	19.2	-53.4	13.9
Debt to Cash Flow from Ops	-3.21	11.17	2.33	-1.42	-2.74	-2.94	3.82	6.07	-1.64	5.99

Difference between Standalone Basis and Consolidated basis? Which method is preferred for Rainbow Foundations Ltd. ?

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	13.9%	-3.7%	-17.7%	-31.5%
Adjusted EPS	15.6%	22.5%	2.4%	171.1%
Book Value per Share	8.5	10.1	8.5	10.6
Share Price	6.1%	-4.6%	-5.1%	16.4%

Key Financial Parameter	Performance Ratio Colour Code Guide

	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Equity (%)	5.49	3.91	5.41	7.73	5.77	10.93	12.15	10.29	1.64	2.73
Operating Profit Margin (%)	24.84	15.22	14.63	17.27	14.38	21.94	24.89	25.87	13.55	19.47
Net Profit Margin (%)	5.79	2.62	3.57	5.27	1.97	4.27	3.42	2.71	1.67	6.58
Debt to Equity	1.85	1.95	1.44	5.29	8.3	12.41	9.16	7.57	1.43	1.32
Working Capital Days	1,380	1,298	1,720	2,299	1,370	1,844	1,313	1,029	1,937	3,711
Cash Conversion Cycle	1,107	764	418	804	798	1,558	1,106	823	1,549	2,047

Management X-Ray

Shareholding Pattern

Entity	Percentage Holding
Promoters	33.93%
Non-Institutions	66.07%

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

FAQs

1. Is Rainbow Foundations Ltd a good quality company?

Data is not available for this company.

2. Is current market price of Rainbow Foundations Ltd a good price to buy it?

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

Rainbow Foundations Ltd earnings have grown by 22.5%, whereas share price has depreciated -4.6% 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.

3. What is Rainbow Foundations Ltd share price return in the past 10 years ?

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 0.6% annually over the past ten years.

About Company

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

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 Foundationâ€™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 - RFLâ€™s upcoming portfolio comprise Rainbow Park (Raja Anamalai Puram), Independent Houses (Guduvanchery) and Rainbow Towers (General Peters Road).

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