Rainbow Childrens Medicare Limited (RAINBOW) AI Stock Analysis

• Market Cap: ₹129.32B
• Dividend Yield: 0.22%
• Average Volume (3M): 8.91K
• Price to Earnings (P/E): 51.0
• Beta (1Y): 0.38
• Revenue Growth: 9.91%
• EPS Growth: 9.57%
• Country: IN
• Employees: 3,940
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 7.40
• Shares Outstanding: 101,559,160
• 10 Day Avg. Volume: 4,219
• 30 Day Avg. Volume: 8,914
• PEG Ratio: 4.75
• Price to Book (P/B): 9.54
• Price to Sales (P/S): 9.24
• P/FCF Ratio: 56.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,550.00
• Price Target Upside: 14.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹1,470.00 ▲(8.99% Upside)

Rainbow Childrens Medicare Limited's overall stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and solid cash flow generation. However, the technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation, which negatively impacts the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful service offerings, enhancing long-term business sustainability.

Cash Flow Generation

Strong cash flow generation supports ongoing investments in growth and provides financial flexibility, ensuring resilience against market fluctuations.

Profitability Margins

Improved profitability margins reflect efficient cost management and operational efficiency, contributing to long-term financial health.

Negative Factors

Rising Liabilities

Rising liabilities could pressure financial stability, potentially limiting future growth opportunities if not managed effectively.

Industry Pressures

Industry pressures may challenge profitability, requiring strategic adjustments to maintain competitive advantage and market position.

Equity Utilization

While ROE improvement is positive, reliance on equity financing may dilute shareholder value if not balanced with debt financing.

Rainbow Childrens Medicare Limited Business Overview & Revenue Model

Company Description

Rainbow Childrens Medicare Limited (RAINBOW) is a prominent healthcare organization based in India, specializing in pediatric healthcare services. The company operates a network of children's hospitals and healthcare facilities that focus on providing high-quality medical care for infants, children, and adolescents. RAINBOW offers a comprehensive range of services including emergency care, surgical procedures, outpatient services, and specialized treatments for various pediatric conditions. With a commitment to child-friendly environments and advanced medical technology, RAINBOW aims to enhance the overall health and well-being of children across the region.

How the Company Makes Money

RAINBOW generates revenue primarily through its healthcare services by charging for inpatient and outpatient treatments, surgical procedures, and consultations. The company also earns income from health insurance partnerships, where it acts as a network provider, allowing insurance companies to reimburse the costs of treatments provided to insured patients. Additionally, RAINBOW may generate revenue from ancillary services such as diagnostics, pharmacy, and rehabilitation programs. Significant partnerships with health insurance providers and collaborations with pediatric specialists contribute to RAINBOW's earnings, enabling a steady flow of patients and enhancing its reputation in the healthcare sector.

Rainbow Childrens Medicare Limited Financial Statement Overview

Summary

Rainbow Childrens Medicare Limited exhibits a robust financial performance characterized by strong revenue growth, improved profitability, and solid cash flow generation. The balance sheet strength, marked by prudent leverage and improved equity utilization, supports the company's growth strategies. While the company is well-positioned, monitoring the rise in liabilities will be important for maintaining financial health.

Income Statement

Rainbow Childrens Medicare Limited has demonstrated strong growth in revenue, increasing from 9,737.58 million INR in 2022 to 15,158.66 million INR in 2025. The gross profit margin remains robust, supported by a significant increase in EBIT and EBITDA margins over the years, indicating efficient cost management and operational efficiency. The net profit margin has also improved, reflecting healthy profitability. However, maintaining this trajectory amidst industry pressures will be crucial.

Balance Sheet

The company's balance sheet is solid, with a healthy equity ratio indicating a strong reliance on equity financing. The debt-to-equity ratio is manageable, suggesting prudent financial leverage. Return on Equity (ROE) has shown improvement, reflecting effective utilization of equity capital. However, the increase in total liabilities warrants careful monitoring to ensure continued stability.

Cash Flow

Rainbow's cash flow statements indicate strong operational cash flows, with a significant improvement in free cash flow over the recent years, suggesting efficient capital expenditure and cash management. The operating cash flow to net income ratio is favorable, highlighting the company's ability to convert net income into cash. The free cash flow growth rate has shown a positive trend, enhancing financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.39B	15.16B	12.97B	11.74B	9.74B	6.50B
Gross Profit	9.71B	10.82B	9.31B	8.44B	6.44B	4.24B
EBITDA	4.89B	4.37B	3.90B	3.65B	2.73B	1.35B
Net Income	2.57B	2.43B	2.17B	2.11B	1.38B	400.18M
Balance Sheet
Total Assets	0.00	23.77B	21.70B	17.76B	14.24B	10.81B
Cash, Cash Equivalents and Short-Term Investments	6.94B	6.94B	5.02B	3.81B	2.03B	1.03B
Total Debt	0.00	7.64B	7.65B	5.70B	5.79B	5.18B
Total Liabilities	-14.75B	9.02B	9.05B	7.06B	6.89B	6.33B
Stockholders Equity	14.75B	14.68B	12.59B	10.60B	6.03B	4.46B
Cash Flow
Free Cash Flow	0.00	2.50B	-321.75M	1.86B	1.62B	666.11M
Operating Cash Flow	0.00	3.96B	3.21B	3.27B	2.24B	1.43B
Investing Cash Flow	0.00	-2.68B	-2.26B	-4.65B	-1.75B	-828.80M
Financing Cash Flow	0.00	-1.18B	-1.02B	1.43B	-440.62M	-608.73M

Rainbow Childrens Medicare Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1348.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAINBOW, the sentiment is Negative. The current price of 1348.8 is above the 20-day moving average (MA) of 1326.57, above the 50-day MA of 1341.41, and below the 200-day MA of 1415.79, indicating a bearish trend. The MACD of -16.77 indicates Positive momentum. The RSI at 30.01 is Neutral, neither overbought nor oversold. The STOCH value of 9.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAINBOW.

Rainbow Childrens Medicare Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPGLIFE	76 Outperform	₹38.62B	17.93	―	0.85%	―	―
HCG	67 Neutral	₹90.12B	252.67	―	―	17.58%	-38.20%
RAINBOW	66 Neutral	₹129.32B	50.95	―	0.22%	9.91%	9.57%
VIMTALABS	64 Neutral	₹25.85B	32.74	―	0.16%	17.05%	56.84%
JUBLPHARMA	62 Neutral	₹169.23B	35.23	―	0.46%	10.09%	-19.40%
KRSNAA	62 Neutral	₹23.70B	27.95	―	0.38%	11.51%	21.56%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%