CRISIL Equities assigns fundamental grade 3/5 to Rainbow Papers Ltd

CRISIL Equities has assigned a CRISIL IER fundamental grade of 3/5 (pronounced three on five) to Rainbow Papers Ltd (Rainbow). The grade indicates that the company's fundamentals are 'good' relative to other listed equity securities in India. CRISIL Equities has assigned a valuation grade of 4/5, indicating that the market price of Rs 220 (closing price as on August 6, 2010) has an 'upside' from the current levels.

We have arrived at a one-year fair value of Rs 246 per share. The grades are not a recommendation to buy, sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor.