Rainbow Children's Medicare Limited

NSEI:RAINBOW Stock Report

Market Cap: ₹160.9b

Rainbow Children's Medicare Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 (₹1633.85) is trading above our estimate of fair value (₹445.23)

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 Ratio71.7x
Earnings₹2.32b
Market Cap₹160.94b

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 Average68.7x
KIMS Krishna Institute of Medical Sciences
72.1x24.3%₹238.2b
NH Narayana Hrudayalaya
32.7x13.6%₹258.4b
JLHL Jupiter Life Line Hospitals
54.6x18.6%₹99.7b
HCG HealthCare Global Enterprises
115.6x48.2%₹65.3b
RAINBOW Rainbow Children's Medicare
71.7x23.2%₹160.9b

Price-To-Earnings vs Peers: RAINBOW is expensive based on its Price-To-Earnings Ratio (71.7x) compared to the peer average (68.7x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
523696 Fortis Malar Hospitals
2.1xn/aUS$11.78m
No more companies available in this PE range
RAINBOW 71.7xIndustry Avg. 41.9xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RAINBOW is expensive based on its Price-To-Earnings Ratio (71.7x) compared to the Indian Healthcare industry average (41.9x).

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 Ratio71.7x
Fair PE Ratio63.2x

Price-To-Earnings vs Fair Ratio: RAINBOW is expensive based on its Price-To-Earnings Ratio (71.7x) compared to the estimated Fair Price-To-Earnings Ratio (63.2x).

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₹1,633.85
₹1,569.56
-3.9%
9.1%₹1,700.00₹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₹870.00n/a7
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
Nov ’23₹706.30
₹731.00
+3.5%
4.0%₹760.00₹702.00₹1,056.752

Analyst Forecast: Target price is lower than the current share price.

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