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Rainbow Childrens Medicare Limited

RAINBOWHealthcare Services

Fundamental Score

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Rainbow Childrens Medicare Limited Share Price & Market Analysis

Current Market Price (CMP)
1330.90
No change data available
Market Cap
14.12K (Cr)
Industry
Healthcare Services

Profitability Metrics

Good

Return on Equity

17.43%
Good

Return on Capital Employed

18.69%
Excellent

Operating Profit Margin (5Y)

32.07%
Poor

Dividend Yield

0.22%

Valuation Metrics

Average

Price to Earnings

54.87x

Market Capitalization

14.12K (Cr)

Industry P/E

54.87x

Growth Metrics

Excellent

YoY Quarterly Profit Growth

35.34%
Poor

YoY Quarterly Sales Growth

6.88%
Excellent

Sales Growth (5Y)

16.08%
Excellent

EPS Growth (5Y)

13.05%
Excellent

Profit Growth (5Y)

33.66%

Financial Health

Poor

Debt to Equity

0.52x
Excellent

Interest Coverage

5.81x
Excellent

Free Cash Flow (5Y)

634.05 (Cr)

Ownership Structure

Average

Promoter Holding

49.85%
Excellent

FII Holding

23.60%
Good

DII Holding

15.44%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Mid-cap
Balance of growth potential and stability.
49.85%
Promoter Holding
14.12K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of RAINBOW across key market metrics for learning purposes.

Positive Indicators

10 factors identified

Strong Return on Equity (17.43%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Excellent ROCE Performance (18.69%)

Observation: Superior returns on capital employed across business operations.

Analysis: ROCE >15% demonstrates efficient capital deployment and strong operational performance. This indicates quality business fundamentals.

Strong Operating Margins (32.07%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Robust Profit Growth (35.34%)

Observation: Strong year-over-year profit expansion demonstrates business momentum.

Analysis: Profit growth >20% indicates effective execution and market opportunity capture. This suggests positive business trajectory.

Consistent Growth Track Record (16.08% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Strong Profit Growth Track Record (33.66% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Strong Interest Coverage (5.81x)

Observation: Earnings comfortably cover interest obligations.

Analysis: Interest coverage >5x indicates low financial distress risk and strong debt servicing capability.

Strong Cash Generation (₹634.05 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Strong Institutional Confidence (FII+DII: 39.04%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

3 factors identified

Premium Valuation Risk (P/E: 54.87x)

Observation: High valuation multiples may limit upside potential.

Analysis: Elevated P/E ratios require strong growth execution to justify current valuations. Consider entry timing carefully.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

Very High P/E Ratio

Observation: Significant overvaluation risk present.

Analysis: Extremely high P/E ratios indicate potential bubble territory and high downside risk.

📊 Educational Market Overview

Disclaimer: The ratings and scores are generated algorithmically from publicly available market data and are provided for educational and informational purposes only. They do not constitute investment advice, recommendation, or solicitation to buy/sell any securities.

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Financial Statements

Comprehensive financial data for Rainbow Childrens Medicare Limited

About RAINBOW

Company Details

Symbol:RAINBOW
Industry:Healthcare Services
Sector:Hospital

Market Information

Market Cap:14.12K (Cr)
P/E Ratio:54.87
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:0.22%

RAINBOW Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)17.43%
Return on Capital Employed18.69%
Operating Profit Margin (5Y)32.07%
Debt to Equity Ratio0.52
Interest Coverage Ratio5.81

Growth & Valuation

Sales Growth (5Y)16.08%
Profit Growth (5Y)33.66%
EPS Growth (5Y)13.05%
YoY Quarterly Profit Growth35.34%
YoY Quarterly Sales Growth6.88%

Frequently Asked Questions

What is the current price of RAINBOW?

RAINBOW is currently trading at ₹1330.90 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of RAINBOW shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of RAINBOW and what does it mean?

RAINBOW has a P/E ratio of 54.87x compared to the industry average of 54.87x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹55 for every ₹1 of annual earnings. This is lower than the industry average, which might indicate undervaluation or slower growth expectations.

How is RAINBOW performing according to Bull Run's analysis?

RAINBOW has a Bull Run fundamental score of 64.2/100, which indicates moderate strength with some areas for improvement. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 17.43%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does RAINBOW belong to?

RAINBOW operates in the Healthcare Services industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting Rainbow Childrens Medicare Limited. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for RAINBOW?

RAINBOW has an ROE of 17.43%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently Rainbow Childrens Medicare Limited generates profits from shareholders' equity. An ROE of 17% means the company generates ₹17 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is RAINBOW's debt-to-equity ratio and what does it indicate?

RAINBOW has a debt-to-equity ratio of 0.52, which indicates moderate leverage that should be monitored. This means the company has ₹52 of debt for every ₹100 of equity. Higher leverage can amplify returns during good times but increases bankruptcy risk during downturns.

What is RAINBOW's dividend yield and is it a good dividend stock?

RAINBOW offers a dividend yield of 0.22%, which means you receive ₹0.22 annual dividend for every ₹100 invested. The focus appears to be more on growth rather than dividend income. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has RAINBOW grown over the past 5 years?

RAINBOW has achieved 5-year growth rates of: Sales Growth 16.08%, Profit Growth 33.66%, and EPS Growth 13.05%. This consistent double-digit growth indicates a strong business model and competitive positioning. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in RAINBOW and why does it matter?

Promoters hold 49.85% of RAINBOW shares, with 0.00% of promoter shares pledged. This promoter holding level suggests balanced ownership between management and public shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: 0.00%.

How does RAINBOW compare with its industry peers?

RAINBOW trades at P/E 54.87x vs industry average 54.87x, with ROE of 17.43% and ROCE of 18.69%. The stock trades at a premium to industry average, which may be justified by superior fundamentals. Peer comparison helps identify whether RAINBOW is outperforming its competitive set in profitability, growth, and valuation metrics.

What is RAINBOW's market capitalization and what category does it fall into?

RAINBOW has a market capitalization of ₹14123 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for RAINBOW?

Key ratios for RAINBOW: ROE 17.43% (Excellent), ROCE 18.69%, P/E 54.87x, Debt-to-Equity 0.52, Interest Coverage 5.81x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is RAINBOW stock and what is its beta?

RAINBOW has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for RAINBOW?

RAINBOW has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹1330.90, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in RAINBOW?

Key risks for RAINBOW include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 0.52), and operational challenges. The stock has a Fundamental Score of 64.2/100, indicating moderate risk requiring careful monitoring. Sector-specific risks in Healthcare Services include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is RAINBOW's operating profit margin and how has it trended?

RAINBOW has a 5-year average Operating Profit Margin (OPM) of 32.07%, which is excellent and indicates strong pricing power and cost control. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. This strong margin indicates competitive advantages and operational leverage. Compare with industry peers to understand relative performance.

How is RAINBOW's quarterly performance in terms of sales and profit growth?

RAINBOW's recent quarterly performance shows YoY Sales Growth of 6.88% and YoY Profit Growth of 35.34%. Growth rates indicate the current business trajectory and market demand. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in RAINBOW?

RAINBOW has FII holding of 23.60% and DII holding of 15.44%, totaling 39.04% institutional ownership. This institutional participation level shows the confidence of professional money managers. Significant FII holding suggests global investor confidence and potential for index inclusion. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.