Rainbow Foundations Limited (RAINBOWF.BO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-1824.2%

-₹517.08

vs ₹29.99 price

Levered DCF

-₹4,284.45

After debt service

Piotroski score

2 / 9

Weak

Altman Z-score

—

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	27.7×	24.21×	21.95×	32.76×	115.66×	3.67×	2.54×	12.29×
P/B	2.26×	2.42×	0.96×	0.64×	1.81×	0.22×	0.07×	0.13×
P/S	1.18×	1.24×	0.75×	1.1×	0.96×	0.12×	0.17×	0.21×
EV / EBITDA	14.2×	11.32×	19.95×	27.06×	42.21×	20.09×	10.76×	13.56×
Gross margin	31.3%	26.6%	28.4%	31.9%	18.1%	23.0%	27.5%	15.4%
Operating margin	28.3%	25.0%	24.5%	25.1%	11.1%	18.0%	19.1%	13.2%
Net margin	4.3%	5.1%	3.4%	3.4%	0.8%	3.3%	6.6%	1.7%
Current ratio	1.36×	1.11×	1.12×	1.38×	1.24×	1.34×	1.37×	1.32×
Debt / equity	5.5×	3.31×	6.47×	5.55×	15.04×	9.87×	1.32×	1.43×
Interest coverage	1.27×	1.35×	1.04×	0.75×	0.64×	0.8×	0.83×	0.88×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.1%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	1.5%	0.5%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	8.1%	10.0%	4.4%	2.0%	1.6%	6.1%	2.7%	1.0%
Return on invested capital	5.8%	8.2%	3.1%	1.6%	0.3%	1.9%	2.5%	1.8%
Return on assets	0.8%	1.1%	0.5%	0.3%	0.1%	0.4%	0.6%	0.3%
Free cash flow yield	-30.8%	-55.9%	-229.0%	-252.8%	-113.1%	601.7%	306.0%	-672.0%
Earnings yield	3.6%	4.1%	4.6%	3.1%	0.9%	27.3%	39.2%	8.1%
Enterprise value	₹6.7B	₹4.6B	₹5.4B	₹4.2B	₹3.2B	₹1.9B	₹873.8M	₹952.1M
Net debt / EBITDA	10.05×	6.53×	17.37×	24.2×	37.67×	19.65×	10.23×	12.43×
Cash conversion cycle (days)	2,500	2,034	2,847	4,249	3,606	2,613	3,731	2,039