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Rainbow FoundationsBOM:531694 -1.63%58 Return-on-Tangible-Equity is 17.92% as of Mar. 2026, which is 372% above its 10-year median of 3.80. GuruFocus rates BOM:531694 with a GF Score™ of 58/100 and a GF Value™ of ₹47.62 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,716 Real Estate companies, Rainbow Foundations ranks better than 60.84% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rainbow Foundations's annualized net income for the quarter that ended in Mar. 2026 was ₹157 Mil. Rainbow Foundations's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹873 Mil. Therefore, Rainbow Foundations's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.92%.
The historical rank and industry rank for Rainbow Foundations's Return-on-Tangible-Equity or its related term are showing as below:
BOM:531694'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.58 Med: 3.8 Max: 12.22
Current: 6.91
During the past 13 years, Rainbow Foundations's highest Return-on-Tangible-Equity was 12.22%. The lowest was 1.58%. And the median was 3.80%.
BOM:531694's Return-on-Tangible-Equity is ranked better than 60.84% of 1716
companies
in the Real Estate industry
Industry Median: 4.355
vs BOM:531694: 6.91
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Rainbow Foundations Return-on-Tangible-Equity Related Terms
Rainbow Foundations Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rainbow Foundations's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:531694 vs CBRE, BEKE, JLL: Return-on-Tangible-Equity Comparison
For the Real Estate Services subindustry, Rainbow Foundations's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rainbow Foundations Return-on-Tangible-Equity vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Rainbow Foundations's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rainbow Foundations's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.92% mean?
Rainbow Foundations (BOM:531694) has a Return-on-Tangible-Equity of 17.92% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rainbow Foundations and its competitors. This is 372% above median its historical median of 3.80. Over the past decade, Rainbow Foundations' Return-on-Tangible-Equity has ranged from 1.58 to 12.22. According to the industry distribution chart, Rainbow Foundations ranks #672 out of 1716 companies in the Real Estate industry, placing it in the top 39.2%.
Is Rainbow Foundations' Return-on-Tangible-Equity too high?
Rainbow Foundations' current Return-on-Tangible-Equity of 17.92% is 372% above median its 10-year median of 3.80. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 12.22. The Real Estate industry median Return-on-Tangible-Equity is 4.36. Rainbow Foundations' value of 17.92% is 311.5% above this industry median. Based on the distribution chart, Rainbow Foundations ranks #672 out of 1716 companies in the Real Estate industry, which is above the industry midpoint. Overall, Rainbow Foundations has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rainbow Foundations' Return-on-Tangible-Equity compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Rainbow Foundations ranks #672 out of 1716 companies for Return-on-Tangible-Equity. This puts Rainbow Foundations in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.36. Rainbow Foundations' value of 17.92% is 311.5% above this benchmark. Historically, Rainbow Foundations' own Return-on-Tangible-Equity has ranged from 1.58 to 12.22 over the past decade. While the company's 10-year median is 3.80 vs. the industry median of 4.36, Rainbow Foundations has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Real Estate company?
The median Return-on-Tangible-Equity among Real Estate companies is 4.36, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rainbow Foundations's current Return-on-Tangible-Equity of 17.92% is 311.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rainbow Foundations and its competitors. For the Real Estate industry, the median Return-on-Tangible-Equity is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Foundations's current Return-on-Tangible-Equity is 17.92%, which is 372% above median its own 10-year median of 3.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Foundations stock overvalued right now?
Based on GuruFocus' analysis, Rainbow Foundations (BOM:531694) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹47.62, compared to a current price of ₹37.38 — trading 21.5% below its estimated fair value. The current Return-on-Tangible-Equity is 17.92%, which is 372% above median its 10-year median of 3.80 and 311.5% above the Real Estate industry median of 4.36. Rainbow Foundations' overall GF Score™ is 58/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Rainbow Foundations (BOM:531694), the current Return-on-Tangible-Equity is 17.92% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rainbow Foundations (BOM:531694) Overvalued in 2026?
Based on GuruFocus' analysis, Rainbow Foundations stock appears to be undervalued.
The current stock price of ₹37.38 is trading 21.5% below its estimated GF Value™ of ₹47.62.
GuruFocus considers Rainbow Foundations to be Modestly Undervalued.
Key valuation signals for BOM:531694:
Return-on-Tangible-Equity: 17.92% (372% above median its 10-year median of 3.80)
GF Value™: ₹47.62 vs. price of ₹37.38 (21.5% below fair value)
Industry Position: 311.5% above the Real Estate median (#672 of 1716)
No single metric tells the full story. See the BOM:531694 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rainbow Foundations Ltd is engaged in real estate development, focused on residential and commercial property projects in India. The company undertakes construction and development of real estate properties, delivering completed projects to customers. It generates revenue through sales and leasing of developed properties, operating principally in the Indian real estate market with ongoing project executions and new developments. The company's operations involve land acquisition, construction, and property sales services.
58GF Score
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