Analysts Have Made A Financial Statement On Rainbow Children's Medicare Limited's (NSE:RAINBOW) Full-Year Report

Shareholders might have noticed that Rainbow Children's Medicare Limited (NSE:RAINBOW) filed its full-year result this time last week. The early response was not positive, with shares down 5.5% to ₹1,259 in the past week. Revenues of ₹13b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹21.38, missing estimates by 3.8%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Rainbow Children's Medicare

Taking into account the latest results, the most recent consensus for Rainbow Children's Medicare from eight analysts is for revenues of ₹15.8b in 2025. If met, it would imply a meaningful 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 21% to ₹25.81. In the lead-up to this report, the analysts had been modelling revenues of ₹15.9b and earnings per share (EPS) of ₹27.03 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,435, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Rainbow Children's Medicare, with the most bullish analyst valuing it at ₹1,530 and the most bearish at ₹1,265 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rainbow Children's Medicare's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. It's clear that while Rainbow Children's Medicare's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Rainbow Children's Medicare. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Rainbow Children's Medicare going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Rainbow Children's Medicare (1 is concerning!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.