Rainbow Childrens Medicare Limited (RAINBOW) AI Stock Analysis

• Market Cap: ₹147.94B
• Dividend Yield: 0.21%
• Average Volume (3M): 2.92K
• Price to Earnings (P/E): 57.3
• Beta (1Y): 0.29
• Revenue Growth: 14.82%
• EPS Growth: 19.38%
• Country: IN
• Employees: 3,940
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 5.30
• Shares Outstanding: 101,559,160
• 10 Day Avg. Volume: 2,584
• 30 Day Avg. Volume: 2,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,690.00
• Price Target Upside: 16.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: ₹1,550.00 ▲(6.99% Upside)

Rainbow Childrens Medicare Limited's strong financial performance is a key strength, supported by robust revenue growth and profitability. However, bearish technical indicators and a high P/E ratio suggest caution. The stock appears overvalued, with limited income potential from dividends.

Rainbow Childrens Medicare Limited Business Overview & Revenue Model

Company Description

Rainbow Children's Medicare Limited operates a multi-specialty pediatric and obstetrics, and gynecology hospital chain in India. The company's child health services include general pediatrics, neonatalogy, surgery, gastroenterology and liver diseases, hematology and oncology, psychology, dentistry, pulmonology, endocrinology, nephrology, nutrition, psychiatry, ENT, cardiology, radiology, physiotherapy and rehabilitation, orthopedics, urology, ophthalmology, dermatology, allergy, neurosurgery, rheumatology, infectious disease, and cranio-maxillofacial surgery; intensive care unit, bone marrow transplant unit, anesthesia and pain management, kidney transplant, cochlear implant services; genetics and metabolic medicines; and laboratory, speech and language therapy, occupational therapy, pediatric and metabolic medicine, developmental and behavioral pediatrics, cerebral palsy care services. Its women health services include obstetrics and gynecology, painless delivery and labor, high risk pregnancy, pregnancy and delivery, childbirth preparation classes, vaginal birth after cesarean, breast feeding support, well women checkup, urogynecology, pre-pregnancy health checkup, minimally invasive surgery, breast care, fetal medicine, menopausal treatment, new-born care, women's nutrition, and diabetology. The company also provides fertility care services, such as fertility treatment, ovulation induction, intracytoplasmic sperm injection treatment, investigation, intrauterine insemination, intracytoplasmic morphologically selected sperm injection, assisted hatching, cryopreservation, sperm and oocyte donor treatments, frozen embryo transfer, surgical sperm retrieval, embryo donor treatments, reproductive surgery, pre-conception counselling, and andrology and urology. As of December 31, 2021, it operated 14 hospitals and 3 clinics in 6 cities with a total of 1,500 beds. The company was incorporated in 1998 and is based in Hyderabad, India.

How the Company Makes Money

Rainbow Childrens Medicare Limited generates revenue primarily through its network of hospitals and clinics by offering a range of pediatric and maternal healthcare services. The company earns money from patient consultations, diagnostic services, surgical procedures, and inpatient hospital stays. Additionally, RAINBOW may receive revenue from partnerships with insurance companies, which helps in covering the cost of treatments for patients with health coverage. The company might also engage in collaborations with pharmaceutical firms for clinical trials or research, contributing to its earnings. Moreover, revenue is supplemented by any ancillary services provided within the healthcare facilities, such as pharmacy sales or specialized health programs.

Rainbow Childrens Medicare Limited Financial Statement Overview

Summary

Rainbow Childrens Medicare Limited exhibits robust financial performance with strong revenue growth, improved profitability, and solid cash flow generation. The balance sheet is marked by prudent leverage and improved equity utilization. However, the increase in liabilities requires monitoring.

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	15.16B	15.16B	12.97B	11.74B	9.74B	6.50B
Gross Profit	9.15B	11.15B	9.31B	10.15B	7.79B	5.37B
EBITDA	5.27B	4.90B	4.69B	4.30B	3.27B	1.75B
Net Income	2.43B	2.43B	2.17B	2.11B	1.38B	400.18M
Balance Sheet
Total Assets	23.77B	23.77B	21.70B	17.76B	14.24B	10.81B
Cash, Cash Equivalents and Short-Term Investments	5.91B	5.91B	5.02B	3.81B	2.03B	1.03B
Total Debt	7.64B	7.64B	7.65B	5.70B	5.79B	5.18B
Total Liabilities	9.02B	9.02B	9.05B	7.11B	8.18B	6.33B
Stockholders Equity	14.68B	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: 1448.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1448.8 is below the 20-day moving average (MA) of 1488.85, below the 50-day MA of 1514.55, and below the 200-day MA of 1450.51, indicating a bearish trend. The MACD of -21.68 indicates Positive momentum. The RSI at 28.34 is Positive, neither overbought nor oversold. The STOCH value of 6.97 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
VIMTALABS	68 Neutral	34.94B	47.10	17.78%	0.13%	15.84%	79.69%
KRSNAA	63 Neutral	27.55B	34.20	8.79%	0.32%	13.78%	32.21%
HCG	61 Neutral	93.72B	246.86	4.81%	―	16.85%	-29.57%
RAINBOW	59 Neutral	₹147.94B	57.35		0.21%	14.82%	19.38%
JUBLPHARMA	56 Neutral	176.71B	38.18	13.42%	0.45%	8.12%	-16.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Rainbow Childrens Medicare Limited Corporate Events

Rainbow Children’s Medicare Seeks Shareholder Approval for Loan Provision

Rainbow Children’s Medicare Limited has issued a Postal Ballot Notice seeking shareholder approval for granting loans under Section 185 of the Companies Act, 2013. The voting process will be conducted through remote e-voting, commencing on August 29, 2025, and concluding on September 27, 2025, with results to be announced by September 30, 2025. This move is part of the company’s strategic financial decisions, potentially impacting its financial operations and stakeholder interests.