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

Shareholders might have noticed that Rainbow Children's Medicare Limited (NSE:RAINBOW) filed its quarterly result this time last week. The early response was not positive, with shares down 5.0% to ₹1,310 in the past week. It was a credible result overall, with revenues of ₹4.0b and statutory earnings per share of ₹6.76 both in line with analyst estimates, showing that Rainbow Children's Medicare is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Rainbow Children's Medicare

Taking into account the latest results, the most recent consensus for Rainbow Children's Medicare from ten analysts is for revenues of ₹18.4b in 2026. If met, it would imply a substantial 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 34% to ₹31.42. Before this earnings report, the analysts had been forecasting revenues of ₹18.7b and earnings per share (EPS) of ₹32.10 in 2026. 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 minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹1,652, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Rainbow Children's Medicare analyst has a price target of ₹1,785 per share, while the most pessimistic values it at ₹1,474. This is a very narrow spread of estimates, implying either that Rainbow Children's Medicare is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 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. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 19% per year. 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. The consensus price target held steady at ₹1,652, with the latest estimates not enough to have an impact on their price targets.

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.

You can also view our analysis of Rainbow Children's Medicare's balance sheet, and whether we think Rainbow Children's Medicare is carrying too much debt, for free on our platform here.

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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.