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RAINBOW: New CEO Will Drive Margin Resilience And Profitable Expansion

Expansion Into Tier Two And Three Markets Will Improve Healthcare

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RAINBOW
AnalystConsensusTarget
Not Invested
Published 24 Feb 2025

Update shared on 16 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-16.3%
7D
-1.2%

Analysts have modestly raised their price target on Rainbow Children's Medicare to ₹1,604.55, citing sustained expectations for strong double digit revenue growth, resilient profit margins and supportive future valuation multiples.

What's in the News

  • The board has appointed industry veteran Abrarali Dalal as Chief Executive Officer and Key Managerial Personnel, effective January 20, 2026, bringing over 25 years of multi location healthcare leadership experience to support the next phase of growth (Key Developments).
  • The new CEO is expected to focus on digital transformation, productivity led profitability improvement, and recruitment and retention of star clinicians, aligning leadership priorities with the company’s scale up ambitions (Key Developments).
  • A board meeting was held on November 13, 2025, to review and approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (Key Developments).
  • The same November 13, 2025 board meeting also considered and approved the appointment of the new Chief Executive Officer as a key agenda item (Key Developments).

Valuation Changes

  • Consensus Analyst Fair Value: Unchanged at ₹1,604.55 per share, indicating stable long term valuation assumptions.
  • Discount Rate: Held steady at 12.76 percent, reflecting an unchanged view of risk and required return.
  • Revenue Growth: Effectively unchanged at about 17.87 percent, with only a negligible rounding adjustment in the underlying model.
  • Net Profit Margin: Flat at approximately 18.55 percent, suggesting no material revision to long term profitability expectations.
  • Future P/E: Maintained at about 48.85 times, signaling consistent expectations for the company’s earnings multiple.

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Disclaimer

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