Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Rainbow Denim. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Rainbow Denim's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Rainbow Denim's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Rainbow Denim's earnings growth to the India market average as no estimate data is available.
Unable to compare Rainbow Denim's revenue growth to the India market average as no estimate data is available.
Unable to determine if Rainbow Denim is high growth as no earnings estimate data is available.
Unable to determine if Rainbow Denim is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Rainbow Denim's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Satinderjit Singh NarinderArora
TENURE AS CEO
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 Financial Officer of Rainbow Denim Limited since November 5, 2018. He served as Chief Financial Officer of Rainbow Denim Limited from November 6, 2015 to May 31, 2017. He has over 30 years rich and varied experience in the field of finance and corporate management. Mr. Arora served as a Whole-Time Director of Rainbow Denim Ltd. from June 1, 2009 to May 31, 2012. Prior to his employment with Rainbow Mr. Arora was associated with various group companies for over 10 years. He is a Commerce Graduate.
Satinderjit Singh Narinder's compensation has increased in line with Rainbow Denim recently becoming profitable.
Satinderjit Singh Narinder's remuneration is higher than average for companies of similar size in India.
Satinderjit Singh Narinder Arora
CEO, CFO & Whole Time Director
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Rainbow Denim board of directors is about average.
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 was incorporated in 1999 and is based in Mumbai, India.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.