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Rainbow Childrens Medicare Limited
(RAINBOW)
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Rating:72Outperform
Price Target:
₹1,749.00
▲(29.67% Upside)
Action:Upgraded
Date:05/25/26
The score is driven primarily by solid financial performance (steady growth, strong margins, and improving leverage) and supportive technical momentum (price above key moving averages with positive MACD). The main constraint is valuation, with a high P/E and minimal dividend yield, plus the risk signaled by uneven free-cash-flow conversion.
Positive Factors
Steady revenue growth
Consistent multi-year top-line expansion indicates durable patient demand and scalable hospital operations across pediatrics and women’s care. Sustained revenue growth supports capacity utilization, helps absorb fixed costs, and underpins multi-period investment plans and long-term margin stability.
Negative Factors
Volatile free cash flow conversion
Large swings in free cash flow reduce predictability of internally generated funds for capex and debt service. Even with solid operating cash, volatile FCF suggests timing mismatches or irregular capital spending that can constrain investment pacing and increase reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent multi-year top-line expansion indicates durable patient demand and scalable hospital operations across pediatrics and women’s care. Sustained revenue growth supports capacity utilization, helps absorb fixed costs, and underpins multi-period investment plans and long-term margin stability.
Read all positive factors
Rainbow Childrens Medicare Limited (RAINBOW) vs. iShares MSCI India ETF (INDA)
Market Cap
₹154.54B
Dividend Yield0.23%
Average Volume (3M)8.91K
Price to Earnings (P/E)54.3
Beta (1Y)0.65
Revenue Growth18.30%
EPS Growth10.86%
CountryIN
Employees3,940
SectorGeneral
Sector StrengthN/A
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)20.27
Shares Outstanding101,566,640
10 Day Avg. Volume4,219
30 Day Avg. Volume8,914
Financial Highlights & Ratios
PEG Ratio2.96
Price to Book (P/B)7.17
Price to Sales (P/S)6.93
P/FCF Ratio86.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,689.50Price Target Upside25.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)32.74
Revenue Forecast (FY)₹20.47B
Rainbow Childrens Medicare Limited Business Overview & Revenue Model
Company Description
Rainbow Children's Medicare Limited is a leading Indian healthcare provider managing a network of multi-specialty hospitals dedicated to pediatric, obstetrics, and gynecology services. Its comprehensive child health offerings include general pedia...
How the Company Makes Money
RAINBOW makes money by delivering hospital and clinical healthcare services to patients, with revenue primarily generated from patient care across its hospitals. Key revenue streams typically include: (1) Inpatient services—room/bed charges, nursi...
Rainbow Childrens Medicare Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.03B | 15.16B | 12.97B | 11.74B | 9.74B |
| Gross Profit | 6.73B | 10.82B | 9.31B | 8.44B | 6.44B |
| EBITDA | 5.86B | 4.37B | 3.90B | 3.65B | 2.73B |
| Net Income | 2.78B | 2.43B | 2.17B | 2.11B | 1.38B |
Balance Sheet | |||||
| Total Assets | 27.75B | 23.77B | 21.70B | 17.76B | 14.24B |
| Cash, Cash Equivalents and Short-Term Investments | 4.38B | 6.94B | 5.02B | 3.81B | 2.03B |
| Total Debt | 8.91B | 7.64B | 7.65B | 5.70B | 5.79B |
| Total Liabilities | 11.11B | 9.02B | 9.05B | 7.06B | 6.89B |
| Stockholders Equity | 16.48B | 14.68B | 12.59B | 10.60B | 6.03B |
Cash Flow | |||||
| Free Cash Flow | 1.37B | 2.50B | -321.75M | 1.86B | 1.62B |
| Operating Cash Flow | 3.54B | 3.96B | 3.21B | 3.27B | 2.24B |
| Investing Cash Flow | -2.70B | -2.68B | -2.26B | -4.65B | -1.75B |
| Financing Cash Flow | -697.53M | -1.18B | -1.02B | 1.43B | -440.62M |
Rainbow Childrens Medicare Limited Technical Analysis
Positive
1348.80
Price Trends
1436.51
Positive
1336.04
Positive
1309.90
Positive
Market Momentum
35.47
Negative
77.12
Negative
89.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAINBOW, the sentiment is Positive. The current price of 1348.8 is below the 20-day moving average (MA) of 1498.28, below the 50-day MA of 1436.51, and above the 200-day MA of 1309.90, indicating a bullish trend. The MACD of 35.47 indicates Negative momentum. The RSI at 77.12 is Negative, neither overbought nor oversold. The STOCH value of 89.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RAINBOW.
Rainbow Childrens Medicare Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹154.54B | 54.28 | ― | 0.22% | 18.30% | 10.86% | |
67 Neutral | ₹1.29T | 66.32 | ― | 0.23% | 15.76% | 34.28% | |
67 Neutral | ₹713.28B | 68.48 | ― | 0.11% | 17.28% | 34.56% | |
66 Neutral | ₹378.68B | 67.90 | ― | 0.04% | 21.27% | 4.08% | |
64 Neutral | ₹414.35B | 50.58 | ― | 0.24% | 57.80% | 3.73% | |
61 Neutral | ₹1.07T | 74.07 | ― | 0.14% | 19.14% | 34.01% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:RAINBOW
Rainbow Childrens Medicare Limited
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95.48
6.45%
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Rainbow Childrens Medicare Limited Corporate Events
Rainbow Children’s Medicare to acquire majority stake in Nellore children’s hospital
Jul 29, 2026
Rainbow Children’s Medicare Limited has signed a Partnership Interest and Contribution Transfer Agreement to acquire a 64% partnership interest and corresponding capital contribution in Super Prime Medical Care LLP. The transaction, valued a...
Rainbow Children’s Medicare to acquire majority stake in Nellore children’s hospital
Jul 29, 2026
Rainbow Children’s Medicare Limited has signed a Partnership Interest and Contribution Transfer Agreement to acquire a majority stake in Super Prime Medical Care LLP, which runs a children’s hospital in Nellore, Andhra Pradesh. The pro...
Rainbow Children’s Medicare to Add Capacity with Guntur Women and Children’s Hospital
Jul 29, 2026
Rainbow Children’s Medicare Limited has announced a strategic capacity addition through the establishment and operation of a new women’s and children’s hospital in Guntur, Andhra Pradesh. The move is positioned to expand its heal...
Rainbow Children’s Medicare Dispatches AGM Notice and FY25-26 Annual Report
Jul 5, 2026
Rainbow Children’s Medicare Limited has notified the stock exchanges that it has dispatched the notice for its 28th Annual General Meeting along with the integrated annual report for the financial year 2025-26 to shareholders. The company ha...
Rainbow Children’s Medicare Schedules Virtual 28th AGM for July 29
Jun 30, 2026
Rainbow Children’s Medicare Limited has notified the stock exchanges that its 28th Annual General Meeting will be held on July 29, 2026 at 10:00 a.m. IST through video conferencing and other audio-visual means. The company has published the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.