Why is Rainbow Childrens Medicare Ltd ?
1
High Management Efficiency with a high ROCE of 19.68%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.84 times
3
Poor long term growth as Operating profit has grown by an annual rate 15.53% of over the last 5 years
4
Positive results in Mar 26
- NET SALES(Q) Highest at Rs 459.90 cr
- PAT(Q) Highest at Rs 78.43 cr.
- EPS(Q) Highest at Rs 7.59
5
Technical trend is Sideways signifying no clear price momentum
- The technical trend has improved from Mildly Bearish on 19-May-26 and has generated 0.74% returns since then
6
With ROCE of 19.1, it has a Very Expensive valuation with a 7.5 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 0.78%, its profits have risen by 8.2% ; the PEG ratio of the company is 6.5
7
High Institutional Holdings at 38.37%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hospital)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rainbow Child. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Rainbow Child.
-4.98%
0.03
24.91%
Sensex
-11.8%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
17.20%
EBIT Growth (5y)
16.93%
EBIT to Interest (avg)
4.96
Debt to EBITDA (avg)
1.65
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
0.70
Tax Ratio
21.72%
Dividend Payout Ratio
12.52%
Pledged Shares
0
Institutional Holding
38.59%
ROCE (avg)
20.01%
ROE (avg)
17.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
45
Industry P/E
60
Price to Book Value
7.75
EV to EBIT
31.76
EV to EBITDA
23.00
EV to Capital Employed
6.30
EV to Sales
7.27
PEG Ratio
3.91
Dividend Yield
0.28%
ROCE (Latest)
18.74%
ROE (Latest)
16.97%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
9What is working for the Company
PAT(Latest six months)
At Rs 139.00 cr has Grown at 26.55%
NET SALES(Q)
Highest at Rs 469.99 cr
-6What is not working for the Company
ROCE(HY)
Lowest at 17.23%
PAT(Q)
At Rs 60.57 cr has Fallen at -13.4% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 71.24 cr has Fallen at -9.8% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Rainbow Child.
Net Sales - Quarterly
Highest at Rs 469.99 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for Rainbow Child.
Profit After Tax (PAT) - Quarterly
At Rs 60.57 cr has Fallen at -13.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 69.93 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 71.24 cr has Fallen at -9.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 78.99 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)