Rainbow Childrens Medicare Ltd logo

Rainbow Childrens Medicare Ltd

RAINBOW NSE

Rainbow Children's Medicare Limited operates a multi-specialty pediatric, obstetrics, and gynecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care, obstetrics, and gynecology. [1] It is country’s largest pediatric hospital chain with 16 hospitals spread across 6 cities.[2]

AI Verdict: BUY Confidence: 7%

Rainbow Childrens Medicare commands a premium valuation at 52.3x PE, but delivers consistent 18% ROE and 22% sales CAGR over 10 years in a structurally growing pediatric healthcare niche. With 100% analyst buy ratings (9/9) and strong profit compounding at 32% over 10 years, the growth trajectory justifies a cautious accumulation strategy.

Key Fundamentals

SmallcapHospitalsHealthcare Services
Market Cap
₹14,766 Cr
Volatility
Moderate
P/E Ratio
52.33
EBITDA
₹543 Cr
Return on Equity
17.26%
Debt to Equity
0.56
Book Value
₹162.28
EPS
₹21.23
52W High
₹1,645.7
52W Low
₹1,084

Technical Indicators

Key Insights

Strengths

1
  • Company's median sales growth is 22.8% of last 10 years

Weaknesses

2
  • Stock is trading at 8.84 times its book value
  • Working capital days have increased from 52.8 days to 95.4 days

Growth Rate

Revenue Growth
8.69% ↗
Net Income Growth
7.33% ↗
Cash Flow Change
23.11% ↗
ROE
-4.06% ↘
ROCE
3.26% ↗
EBITDA Margin (Avg.)
-10.02% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Rainbow Childrens Medicare commands a premium valuation at 52.3x PE, but delivers consistent 18% ROE and 22% sales CAGR over 10 years in a structurally growing pediatric healthcare niche. With 100% analyst buy ratings (9/9) and strong profit compounding at 32% over 10 years, the growth trajectory justifies a cautious accumulation strategy.

Bull Case 8
  • Unanimous analyst consensus with 9 out of 9 analysts rating BUY (100% buy recommendation)
  • Exceptional 10-year compounded sales growth of 22% CAGR demonstrating sustained revenue expansion in pediatric healthcare
  • 10-year compounded profit growth of 32% CAGR significantly outpacing sales growth, indicating improving operating leverage
  • Consistent ROE of 18% maintained across 3-year, 5-year, and 10-year periods showing stable return generation on equity
  • TTM profit growth of 18% continues to outpace TTM sales growth of 12%, reflecting margin expansion
  • Median sales growth of 22.8% over last 10 years confirms structural demand tailwind in pediatric specialty care
  • 5-year compounded profit CAGR of 48% demonstrates explosive earnings growth phase during expansion
  • Market cap of Rs 14,878 Cr positions Rainbow as a mid-to-large cap with institutional liquidity and potential index inclusion tailwinds
Bear Case 8
  • Stock trades at 52.3x PE which is significantly expensive compared to broader healthcare sector average of 30-35x
  • Price-to-book ratio of 9.06x is extremely elevated, indicating substantial premium over tangible asset value
  • Working capital days deteriorated sharply from 52.8 days to 95.4 days, an 81% increase signaling cash conversion inefficiency
  • Stock CAGR of just 1% over 1 year indicates price stagnation despite 18% profit growth, suggesting valuation compression risk
  • Dividend yield of only 0.24% offers negligible income return for investors at current valuations
  • 3-year compounded profit growth slowed to 10% CAGR from 48% over 5 years, indicating deceleration in earnings momentum
  • 3-year stock CAGR of 15% lags the 10-year sales CAGR of 22%, suggesting market is pricing in slower forward growth
  • TTM revenue growth moderated to 12% from 13% three-year CAGR, hinting at possible growth ceiling in existing markets

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 3d ago
Positives 2
  • FY26 PAT up 15% YoY May 23

    Rainbow Children's Medicare reported consolidated net profit of ₹2,815.44 million for FY26, a 15.3% rise year-over-year, signaling steady earnings growth.

  • Final dividend of ₹3.5/share May 23

    The board recommended a final dividend of ₹3.5 per share for FY26, reflecting confidence in cash flow generation and shareholder returns.

TL;DR: Rainbow Children's Medicare delivered solid FY26 results with 15.3% profit growth and announced a ₹3.5 dividend, indicating healthy operational momentum. No headwinds surfaced in recent coverage. The trend is positive, though limited news flow means investors should watch for upcoming quarterly guidance and expansion updates to confirm sustained growth.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
317
287
333
336
341
330
417
398
370
353
445
445
460
Expenses
219
199
215
218
236
236
270
264
255
249
296
298
315
Operating Profit
98
88
118
118
106
94
147
134
115
104
149
147
145
OPM %
31%
31%
35%
35%
31%
28%
35%
34%
31%
29%
33%
33%
31%
Other Income
9
8
8
9
13
12
11
13
15
20
8
11
4
Interest
14
15
13
14
17
18
18
18
18
18
19
20
20
Depreciation
23
25
27
28
32
34
35
35
34
34
36
40
41
PBT
70
56
85
85
69
53
105
94
77
71
102
98
87
Tax %
23%
25%
26%
26%
26%
26%
25%
27%
27%
25%
26%
24%
10%
Net Profit
54
42
63
63
51
40
79
69
57
54
76
74
78
EPS in Rs
5.28
4.04
6.2
6.12
5.02
3.89
7.77
6.76
5.55
5.27
7.41
7.14
7.59
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
169
234
321
402
543
719
650
974
1,174
1,297
1,516
1,703
Expenses
128
204
266
332
391
519
485
666
774
865
1,022
1,159
Operating Profit
41
30
55
69
151
201
165
308
400
432
494
544
OPM %
24%
13%
17%
17%
28%
28%
25%
32%
34%
33%
33%
32%
Other Income
10
16
11
10
8
10
10
19
31
37
51
42
Interest
3
3
3
4
42
48
46
56
58
63
77
78
Depreciation
9
18
22
28
60
69
73
83
90
112
138
151
PBT
38
24
41
47
58
93
56
187
282
295
330
358
Tax %
35%
28%
24%
22%
22%
41%
29%
26%
25%
26%
26%
21%
Net Profit
25
17
31
36
45
55
40
139
212
218
244
282
EPS in Rs
26.74
18.22
33.78
8.25
10.14
12.68
9.1
14.7
20.77
21.38
23.97
27.4
Div. Payout %
7%
11%
7%
12%
10%
16%
0%
14%
14%
14%
13%
13%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
9
9
9
44
44
44
44
94
102
102
102
102
Reserves
166
275
308
307
317
350
391
498
958
1,157
1,367
1,547
Borrowings
22
24
26
24
476
501
529
592
570
765
764
891
Other Liabilities
34
41
55
73
89
123
116
112
146
146
145
236
Total Liabilities
231
349
399
448
926
1,019
1,081
1,296
1,776
2,170
2,377
2,775
Fixed Assets
78
123
174
296
702
702
772
858
931
1,253
1,398
1,759
CWIP
35
31
7
12
23
43
29
6
23
20
28
76
Investments
7
2
6
0
3
10
18
22
58
308
571
404
Other Assets
111
194
212
140
199
265
262
409
764
590
380
535
Total Assets
231
349
399
448
926
1,019
1,081
1,296
1,776
2,170
2,377
2,775
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
26
17
36
48
127
170
143
224
327
321
396
420
Investing
-20
-107
-33
-42
-117
-117
-83
-175
-465
-226
-268
-259
Financing
-7
93
-1
-7
-9
-52
-61
-44
143
-102
-118
-147
Net Cash Flow
-1
3
1
-2
2
2
-1
4
5
-7
10
14
Free Cash Flow
-35
-46
-21
-103
42
96
67
162
186
-32
250
204
CFO/OP
95
88
79
88
94
95
102
93
102
95
97
96
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
11
10
16
14
24
22
25
15
18
20
19
22
Inventory Days
39
35
48
36
32
55
36
28
43
53
52
67
Days Payable
121
107
142
151
197
202
190
121
195
180
170
162
Cash Conversion Cycle
-72
-62
-79
-100
-141
-124
-130
-78
-133
-107
-100
-73
Working Capital Days
-35
-36
-28
-31
-26
-18
-17
-16
73
44
19
95
ROCE %
22%
11%
14%
14%
16%
16%
11%
23%
24%
19%
19%
18%

Shareholding Pattern

As of Mar 2026
Promoters 49.84%
DIIs 21.13%
FIIs 17.24%
Public 10.70%
Others 1.10%
Total 100.01%
  Dec 2021May 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
63.70%
49.83%
49.83%
49.83%
49.83%
49.83%
49.83%
49.83%
49.83%
49.83%
49.88%
49.85%
49.85%
49.85%
49.85%
49.85%
49.84%
49.84%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
21.63%
22.32%
24.04%
24.78%
25.11%
25.12%
23.69%
23.59%
21.85%
19.23%
17.24%
DIIs
0.00%
6.35%
6.55%
10.26%
13.90%
15.38%
15.35%
15.40%
15.62%
14.76%
13.80%
13.83%
13.87%
15.31%
15.44%
17.46%
19.49%
21.13%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
0.00%
19.03%
15.87%
13.24%
13.75%
13.29%
13.04%
11.92%
11.03%
10.40%
10.74%
10.40%
10.38%
10.34%
10.32%
10.06%
10.49%
10.70%
Others
36.30%
24.79%
27.75%
26.67%
22.52%
21.50%
21.78%
1.22%
1.21%
0.97%
0.80%
0.80%
0.77%
0.79%
0.79%
0.78%
0.95%
1.10%
No. of Shareholders
146
2,43,189
1,66,064
91,530
79,224
75,611
74,690
79,187
80,471
77,152
78,557
77,524
78,764
79,092
80,320
81,134
88,809
88,561

Documents

Frequently Asked Questions about Rainbow Childrens Medicare Ltd

What does Rainbow Childrens Medicare Ltd do?
Rainbow Children's Medicare Limited operates a multi-specialty pediatric, obstetrics, and gynecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care, obstetrics, and gy...
Where is Rainbow Childrens Medicare Ltd (RAINBOW) listed?
Rainbow Childrens Medicare Ltd is listed on the Indian stock exchanges. It is listed on NSE: RAINBOW and BSE: 543524. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Rainbow Childrens Medicare Ltd belong to?
Rainbow Childrens Medicare Ltd operates in the Healthcare sector within the Healthcare Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Rainbow Childrens Medicare Ltd?
Rainbow Childrens Medicare Ltd has a market capitalisation of approximately ₹14765.69 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Rainbow Childrens Medicare Ltd?
The Price-to-Earnings (PE) ratio of Rainbow Childrens Medicare Ltd is 52.33. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Rainbow Childrens Medicare Ltd?
Over the past 52 weeks, Rainbow Childrens Medicare Ltd has traded between a low of ₹1,084 and a high of ₹1,645.7. This range helps investors understand the stock's price volatility and recent trading levels.
Does Rainbow Childrens Medicare Ltd pay dividends?
Yes, Rainbow Childrens Medicare Ltd has a dividend yield of 0.24%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Rainbow Childrens Medicare Ltd?
Rainbow Childrens Medicare Ltd has a Return on Equity (ROE) of 17.26%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Rainbow Childrens Medicare Ltd on Tapetide?
On Tapetide, you can view Rainbow Childrens Medicare Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Rainbow Children's Medicare Limited operates a multi-specialty pediatric, obstetrics, and gynecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care, obstetrics, and gynecology. [1] It is country’s largest pediatric hospital chain with 16 hospitals spread across 6 cities.[2]

Website rainbowhospitals.in
Listed 2022-05-10
Face Value ₹ 10
Issued Size 10,15,59,156

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