BSE:532441

Stock Analysis Report

Executive Summary

Rainbow Denim Limited manufactures and sells denim fabrics in India and internationally.

Snowflake

Fundamentals

Weak fundamentals or lack of information.

Share Price & News

How has Rainbow Denim's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

532441

-0.02%

IN Luxury

1.6%

IN Market


1 Year Return

-5.9%

532441

7.7%

IN Luxury

0.8%

IN Market

Return vs Industry: 532441 underperformed the Indian Luxury industry which returned 7.7% over the past year.

Return vs Market: 532441 underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

532441IndustryMarket
7 Day0%-0.02%1.6%
30 Day0%5.5%1.5%
90 Day-0.7%3.9%-3.3%
1 Year-5.9%-5.9%8.6%7.7%2.7%0.8%
3 Year-20.0%-20.0%49.5%47.8%22.0%16.0%
5 Year42.1%42.1%108.9%105.0%42.3%29.3%

Price Volatility Vs. Market

How volatile is Rainbow Denim's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rainbow Denim undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Rainbow Denim is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Rainbow Denim has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 532441’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Rainbow Denim regulatory filings.
  • Explore potentially undervalued companies in the Consumer Durables industry.

Future Growth

How is Rainbow Denim forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.7%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rainbow Denim has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Rainbow Denim performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532441 is unprofitable, but has reduced losses over the past 5 years at a rate of 30% per year.

Accelerating Growth: Unable to compare 532441's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532441 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (7.8%).


Return on Equity

High ROE: 532441's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: 532441 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 532441 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Rainbow Denim's financial position?


Financial Position Analysis

Short Term Liabilities: 532441 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 532441 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 532441 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 532441's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 532441 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532441 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 532441 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 532441 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Rainbow Denim's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 532441's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532441's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 532441's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532441's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532441's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Rainbow Denim's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average board tenure


CEO

Satinderjit Singh Narinder Arora (58yo)

1.1yrs

Tenure

₹2,690,000

Compensation

Mr. Satinderjit Singh Narinder Singh Arora has been a Whole Time Director of Rainbow Denim Limited since May 31, 2012 and has been its Chief Executive Officer since September 1, 2018. He has been Chief Fin ...


CEO Compensation Analysis

Compensation vs. Market: Satinderjit Singh Narinder's total compensation ($USD0.00) is too low to compare against companies of similar size in the Indian market ($USD25.38K).

Compensation vs Earnings: Satinderjit Singh Narinder's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

5.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 532441's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Satinderjit Singh Narinder Arora (58yo)

    CEO, CFO & Whole Time Director

    • Tenure: 1.1yrs
    • Compensation: ₹2.69m
  • Bhavna Dave

    Company Secretary & Compliance Officer

    • Tenure: 0.7yrs

Board Members

  • Haresh Ramsinghani (57yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹14.00k
  • Deonath Singh (46yo)

    Non-Executive Independent Director

    • Tenure: 20.5yrs
    • Compensation: ₹22.00k
  • Satinderjit Singh Narinder Arora (58yo)

    CEO, CFO & Whole Time Director

    • Tenure: 1.1yrs
    • Compensation: ₹2.69m
  • BIFR Khanna (73yo)

    Additional Non Executive Independent Director

    • Tenure: 0.6yrs
  • Ramrao Kulkarni

    Additional Non Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹20.00k

Company Information

Rainbow Denim Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rainbow Denim Limited
  • Ticker: 532441
  • Exchange: BSE
  • Founded: 1999
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹71.732m
  • Shares outstanding: 13.28m
  • Website: https://www.rainbowdenim.com

Number of Employees


Location

  • Rainbow Denim Limited
  • 51/52, Free Press House
  • Free Press Journal Marg
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532441BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2004

Biography

Rainbow Denim Limited manufactures and sells denim fabrics in India and internationally. The company offers various denim products with combinations of texture, shades, and finishes. Rainbow Denim Limited  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:31
End of Day Share Price2019/08/30 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.