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Rainbow Childrens Medicare Limited
(RAINBOW)
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Rating:59Neutral
Price Target:
₹1,222.00
▼(-9.40% Downside)
Action:Downgraded
Date:08/25/26
The score is primarily supported by strong financial performance—steady growth, high profitability, and improved leverage—partly offset by weak free-cash-flow conversion in 2026. Technicals are mildly bearish in the near term (below 20D/50D with negative MACD), and valuation is a notable headwind due to the high P/E and very low dividend yield.
Positive Factors
Steady Revenue Growth
Steady revenue expansion indicates continuing demand for the company’s pediatric, women’s, and related hospital services. Continued scale-up can support operating leverage, broaden the hospital network’s clinical reach, and provide a durable base for future earnings growth over the next several quarters.
Negative Factors
Volatile Free Cash Flow
Uneven free-cash-flow conversion means reported earnings do not consistently translate into funds available for expansion, debt reduction, or other uses. The volatility suggests changing reinvestment or capital-spending demands that could constrain financial flexibility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Steady revenue expansion indicates continuing demand for the company’s pediatric, women’s, and related hospital services. Continued scale-up can support operating leverage, broaden the hospital network’s clinical reach, and provide a durable base for future earnings growth over the next several quarters.
Read all positive factors
Rainbow Childrens Medicare Limited (RAINBOW) vs. iShares MSCI India ETF (INDA)
Market Cap
₹118.76B
Dividend Yield0.3%
Average Volume (3M)31.66K
Price to Earnings (P/E)41.6
Beta (1Y)0.71
Revenue Growth18.30%
EPS Growth10.86%
CountryIN
Employees4,724
SectorGeneral
Sector StrengthN/A
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)28.10
Shares Outstanding101,566,640
10 Day Avg. Volume22,444
30 Day Avg. Volume31,660
Financial Highlights & Ratios
PEG Ratio2.83
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
₹1,750.00Price Target Upside29.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)32.65
Revenue Forecast (FY)₹20.56B
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 | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.20B | 17.03B | 15.16B | 12.97B | 11.74B | 9.74B |
| Gross Profit | 7.18B | 6.73B | 10.82B | 9.31B | 8.44B | 6.44B |
| EBITDA | 5.97B | 5.86B | 4.90B | 4.32B | 4.00B | 3.05B |
| Net Income | 2.85B | 2.78B | 2.43B | 2.17B | 2.11B | 1.38B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 27.75B | 23.77B | 21.70B | 17.76B | 12.96B |
| Cash, Cash Equivalents and Short-Term Investments | 4.89B | 4.38B | 6.94B | 5.02B | 3.81B | 2.03B |
| Total Debt | 0.00 | 8.91B | 7.64B | 7.65B | 5.70B | 5.79B |
| Total Liabilities | -16.64B | 11.11B | 9.02B | 9.05B | 7.06B | 6.89B |
| Stockholders Equity | 16.64B | 16.48B | 14.68B | 12.59B | 10.60B | 6.03B |
Cash Flow | ||||||
| Free Cash Flow | -946.85M | 1.37B | 2.50B | -321.75M | 1.86B | 1.62B |
| Operating Cash Flow | 2.08B | 3.54B | 3.96B | 3.21B | 3.27B | 2.24B |
| Investing Cash Flow | -1.25B | -2.70B | -2.68B | -2.26B | -4.65B | -1.75B |
| Financing Cash Flow | -762.19M | -697.53M | -1.18B | -1.02B | 1.43B | -440.62M |
Rainbow Childrens Medicare Limited Technical Analysis
Negative
1348.80
Price Trends
1376.80
Negative
1413.59
Negative
1321.49
Negative
Market Momentum
-55.48
Positive
23.56
Positive
13.75
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 1268.78, below the 50-day MA of 1376.80, and above the 200-day MA of 1321.49, indicating a bearish trend. The MACD of -55.48 indicates Positive momentum. The RSI at 23.56 is Positive, neither overbought nor oversold. The STOCH value of 13.75 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹318.51B | 57.25 | ― | 0.08% | 21.27% | 4.09% | |
62 Neutral | ₹336.58B | 41.05 | ― | 0.27% | 57.80% | 4.07% | |
60 Neutral | ₹543.57B | 51.36 | ― | 0.14% | 17.50% | 20.65% | |
59 Neutral | ₹118.76B | 41.62 | ― | 0.30% | 18.30% | 10.86% | |
59 Neutral | ₹1.11T | 53.19 | ― | 0.26% | 17.20% | 32.79% | |
55 Neutral | ₹795.19B | 54.44 | ― | 0.24% | 15.96% | 26.87% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:RAINBOW
Rainbow Childrens Medicare Limited
1,169.30
-187.11
-13.79%
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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...
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.