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Rainbow Foundations Ltd (531694)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 531694 NSE: Construction - Real Estate | Small Cap | Rainbow Foundation Share Price

₹41.72 0.60 (1.46%)

As on 04-Jun'26 16:59

Rainbow Foundations Ltd (531694)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 531694 NSE: Construction - Real Estate | Small Cap | Rainbow Foundation Share Price

₹41.72 0.60 (1.46%)

As on 04-Jun'26 16:59

Key Metrics
Valuation Multiples
Market Cap
₹207 Cr.
Current Price
₹41.7
52-Week Low / High
₹36 / 139
TTM EPS
₹1.4
TTM Sales
₹167 Cr.
Book Value per Share
₹17.6
P/E Ratio
29.09
Lower than its 5-year historical median
Industry PE
42.8
Price to Book (P/B)
2.37
Higher than its 5-year historical median
Price to Sales (P/S)
1.24
In line with its 5-year historical median
EV/EBITDA
14.14
Lower than its 5-year historical median
Dividend Yield
0.00%
Profitability Efficiency
Return on Equity (ROE)
10.51%
Outperforms industry median
Return on Capital Employed (ROCE)
6.64%
Outperforms industry median
Return on Assets (ROA)
1.18%
Operating Profit Margin
25.3%
Net Profit Margin
5.13%
Gross Profit Margin
7.3%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Improving versus 3-year growth rate
67.02%
Operating Profit Growth (1 Year)
Slowing versus 3-year growth rate
69.32%
Net Profit Growth (1 Year)
Improving versus 3-year growth rate
151.1%
Asset Quality
Promoter Holding
41.48%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹38 Cr.
Equity
₹49.6 Cr.
Face Value
₹10
All Time Low / High
₹1.72 / 139.15

Rainbow Foundations stock performance

Key Ratios
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Quality

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Valuation

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Price Trend

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Q.1 Is Rainbow Foundations Ltd a good quality company?
Rainbow Foundations Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does Rainbow Foundations Ltd performance compare with that of its Peers?
Q.1 Revenue growth of Rainbow Foundations Ltd vs industry peers?
Rainbow Foundations Ltd revenue CAGR is 43.29%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Q.1 Promoter shareholding and pledge status of Rainbow Foundations Ltd?
Promoters hold 41.48% of the Rainbow Foundations Ltd, with 0.00% of their stake pledged, indicating no pledge risk.
Q.1 Stock return of Rainbow Foundations Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.1% based on the current price.

10 Year X-Ray : Login to view analysis.

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

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 5.8%8%11.2%4.9%5.6%4.7%2.7%4.1%5.3%6.6%-
Value Creation
Index
-0.6-0.4-0.2-0.7-0.6-0.7-0.8-0.7-0.6-0.5-

Growth Parameters

Sales 29.746.455.437.825.934.63640.293.5156167
Sales YoY Gr.-56.2%19.4%-31.8%-31.5%33.9%4%11.7%132.3%67%-
Adj EPS 1.11.41.30.51.510.50.30.61.61.4
YoY Gr.-25%-5.2%-57.8%168.5%-33.1%-45.4%-49.1%133.3%155.6%-
BVPS (₹) 10.411.813.113.6151634.713.914.616.217.6
Adj Net
Profit
1.31.61.50.61.71.10.31.43.187
Cash Flow from Ops. -51.733.219.2-53.413.925.2-39.2-112-158-80.5-
Debt/CF from Ops. -2.93.86.1-1.669.2-7.4-3.4-3-7.3-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 20.2%43.3%63.1%67%
Adj EPS 4.5%2.1%44.8%155.6%
BVPS5%1.5%-22.5%11.1%
Share Price 18.7% 38.6% 55.9% -14.6%

Key Financial Parameters

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
10.912.210.31.62.72.81.53.14.410.58.5
Op. Profit
Mgn %
21.924.925.913.619.518.511.425.22525.328.5
Net Profit
Mgn %
4.33.42.71.76.63.30.83.43.35.14.3
Debt to
Equity
12.49.27.61.41.312.3155.66.57.31.6
Working Cap
Days
1,8441,3131,0291,9373,7113,0403,2643,9192,2091,569909
Cash Conv.
Cycle
1,5581,1068231,5492,0471,9192,0372,5651,7281,312164

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales304655382635364093156
Operating Expenses + 233541332128323070117
Manufacturing Costs0000000111
Material Costs223440311927292767113
Employee Cost 0111111111
Other Costs 0001111111
Operating Profit 712145564102340
Operating Profit Margin (%) 21.9%24.9%25.9%13.5%19.5%18.4%11.4%25.2%25.0%25.3%
Other Income + 1112334541
Exceptional Items 0000000000
Interest 610136686142229
Depreciation 0000000010
Profit Before Tax 22212212411
Tax 1111101013
Profit After Tax 1221210138
PAT Margin (%) 4.4%3.4%2.7%1.7%6.6%3.3%0.8%3.4%3.4%5.1%
Adjusted EPS (₹)1.11.41.30.61.51.00.50.30.61.6
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Valuation of Rainbow Foundation - Standalone

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund + 12141561631919697280
Share Capital 666515166505050
Reserves 781010121314192331
Debt +1521271168883231241347293266
Long Term Debt00001359518132
Short Term Debt1521271168871172190267290263
Minority Interest0000000000
Trade Payables9191617295034706463
Others Liabilities 6668510335244187330
Total Liabilities 179166153251278303346531616739

Fixed Assets

Net Fixed Assets +0111211122
Gross Block1122221144
Accumulated Depreciation1111110012
CWIP 0000000000
Investments 0000001124
Inventories149135141195215238266383539655
Trade Receivables162056732446160
Cash Equivalents 6511000812
Others Assets 86549546076931116
Total Assets 179166153251278303346531616739

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity + -523319-531425-39-112-158-81
PBT 22212212411
Adjustment 5912435391929
Changes in Working Capital -58236-581019-42-122-181-118
Tax Paid -0-1-1-0-1-0-1-0-1-2
Cash Flow From Investing Activity + 100-40-4-2-10-1084-2
Capex -0-0-00-1-0-0-0-1-0
Net Investments 00000-0-00-1-3
Others 111-40-3-1-10-10870
Cash Flow From Financing Activity 56-35-2393-10-23501306783
Net Proceeds from Shares + 000460004900
Net Proceeds from Borrowing 0000121385178139
Interest Paid -6-10-13-6-6-8-6-14-22-29
Dividend Paid 0000000000
Others 61-25-1154-17-17184411-27
Net Cash Flow 5-2-4-0-0008-71

Financial Ratio

PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)11.212.2210.294.0910.16.261.583.074.5210.51
ROCE (%)5.777.9911.154.925.584.692.74.055.336.64
Asset Turnover Ratio0.190.270.350.190.10.120.110.090.160.23
PAT to CFO Conversion(x)-5216.59.5-53725N/A-112-52.67-10.13
Working Capital Days
Receivable Days136.30140.4083.5053.8092.4054.8024.20208.60205.70141.60
Inventory Days1,624.801,115.80907.601,623.902,894.202,385.102,550.102,940.601,7991,395.20
Payable Days252.10151.10159.50190.30442.50538.40520695367205.50

Management X-Ray

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 (%)

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

Rainbow Foundations Ltd FAQs

The current trading price of Rainbow Foundation on 04-Jun-2026 16:59 is ₹41.72.

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 03-Jun-2026 the market cap of Rainbow Foundation stood at ₹207.0 Cr

The latest P/E ratio of Rainbow Foundation as of 03-Jun-2026 is 29.09.

The latest P/B ratio of Rainbow Foundation as of 03-Jun-2026 is 2.37.

The 52-week high of Rainbow Foundation is ₹139.2 and the 52-week low is ₹35.60.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rainbow Foundation is ₹167 ( Cr.) .

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

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

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.

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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