Rainbow Children's Medicare Limited

NSEI:RAINBOW Stock Report

Market Cap: ₹152.5b

Rainbow Children's Medicare Valuation

Is RAINBOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RAINBOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RAINBOW (₹1501.35) is trading above our estimate of fair value (₹478.35)

Significantly Below Fair Value: RAINBOW is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RAINBOW?

Key metric: As RAINBOW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RAINBOW. This is calculated by dividing RAINBOW's market cap by their current earnings.
What is RAINBOW's PE Ratio?
PE Ratio65.9x
Earnings₹2.32b
Market Cap₹152.46b

Price to Earnings Ratio vs Peers

How does RAINBOW's PE Ratio compare to its peers?

The above table shows the PE ratio for RAINBOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average68.9x
KIMS Krishna Institute of Medical Sciences
71.1x24.9%₹235.5b
NH Narayana Hrudayalaya
34.2x13.8%₹266.3b
HCG HealthCare Global Enterprises
115.4x48.2%₹65.8b
JLHL Jupiter Life Line Hospitals
54.8x18.6%₹101.4b
RAINBOW Rainbow Children's Medicare
65.9x23.2%₹152.5b

Price-To-Earnings vs Peers: RAINBOW is good value based on its Price-To-Earnings Ratio (65.9x) compared to the peer average (68.9x).


Price to Earnings Ratio vs Industry

How does RAINBOW's PE Ratio compare vs other companies in the IN Healthcare Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
523696 Fortis Malar Hospitals
2.4xn/aUS$13.40m
542918 Gian Life Care
5xn/aUS$2.27m
No more companies available in this PE range
RAINBOW 65.9xIndustry Avg. 42.4xNo. of Companies7PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RAINBOW is expensive based on its Price-To-Earnings Ratio (65.9x) compared to the Indian Healthcare industry average (42.4x).


Price to Earnings Ratio vs Fair Ratio

What is RAINBOW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RAINBOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio65.9x
Fair PE Ratio62.7x

Price-To-Earnings vs Fair Ratio: RAINBOW is expensive based on its Price-To-Earnings Ratio (65.9x) compared to the estimated Fair Price-To-Earnings Ratio (62.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RAINBOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,501.35
₹1,600.11
+6.6%
10.2%₹1,800.00₹1,240.00n/a9
Dec ’25₹1,589.40
₹1,586.22
-0.2%
10.1%₹1,800.00₹1,240.00n/a9
Nov ’25₹1,549.50
₹1,569.56
+1.3%
9.1%₹1,700.00₹1,240.00n/a9
Oct ’25₹1,455.25
₹1,382.33
-5.0%
8.0%₹1,630.00₹1,240.00n/a9
Sep ’25₹1,267.50
₹1,372.89
+8.3%
7.9%₹1,630.00₹1,240.00n/a9
Aug ’25₹1,194.65
₹1,411.38
+18.1%
7.3%₹1,530.00₹1,240.00n/a8
Jul ’25₹1,256.35
₹1,413.25
+12.5%
7.4%₹1,530.00₹1,240.00n/a8
Jun ’25₹1,300.70
₹1,413.25
+8.7%
7.4%₹1,530.00₹1,240.00n/a8
May ’25₹1,375.20
₹1,397.88
+1.6%
8.0%₹1,570.00₹1,215.00n/a8
Apr ’25₹1,352.05
₹1,365.43
+1.0%
6.7%₹1,475.00₹1,215.00n/a7
Mar ’25₹1,325.30
₹1,365.43
+3.0%
6.7%₹1,475.00₹1,215.00n/a7
Feb ’25₹1,191.60
₹1,365.43
+14.6%
6.7%₹1,475.00₹1,215.00n/a7
Jan ’25₹1,220.30
₹1,194.17
-2.1%
4.5%₹1,271.00₹1,100.00n/a6
Dec ’24₹1,104.00
₹1,147.86
+4.0%
10.8%₹1,271.00₹870.00₹1,589.407
Nov ’24₹1,056.75
₹1,147.86
+8.6%
10.8%₹1,271.00₹870.00₹1,549.507
Oct ’24₹1,028.35
₹1,113.00
+8.2%
11.0%₹1,230.00₹870.00₹1,455.256
Sep ’24₹1,054.85
₹1,104.00
+4.7%
12.5%₹1,230.00₹870.00₹1,267.505
Aug ’24₹1,102.70
₹1,005.00
-8.9%
10.7%₹1,185.00₹870.00₹1,194.655
Jul ’24₹961.10
₹984.00
+2.4%
9.1%₹1,135.00₹870.00₹1,256.355
Jun ’24₹959.85
₹957.00
-0.3%
5.5%₹1,010.00₹870.00₹1,300.705
May ’24₹791.35
₹925.00
+16.9%
7.4%₹1,025.00₹840.00₹1,375.204
Apr ’24₹730.50
₹891.67
+22.1%
4.8%₹945.00₹840.00₹1,352.053
Mar ’24₹726.45
₹891.67
+22.7%
4.8%₹945.00₹840.00₹1,325.303
Feb ’24₹737.65
₹858.33
+16.4%
3.6%₹900.00₹825.00₹1,191.603
Jan ’24₹739.20
₹875.00
+18.4%
2.9%₹900.00₹850.00₹1,220.302
Dec ’23₹772.75
₹875.00
+13.2%
2.9%₹900.00₹850.00₹1,104.002

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 18:25
End of Day Share Price 2024/12/26 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Rainbow Children's Medicare Limited is covered by 13 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullAnand Rathi Shares and Stock Brokers Limited
Himanshu BinaniAnand Rathi Shares and Stock Brokers Limited
null nullAsian Markets Securities Private Limited