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Rainbow Children's Medicare Limited (RAINBOW) Fair Value & Analysis

Healthcare · IN · Market cap ₹144B

RC Rainbow Children's Medicare Limited RAINBOW · NSE
Price₹1,440
Fair Value₹575.08
Upside-60.1%
Quality57/100
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Evidence: High Range ₹332.20 – ₹839.28

Fair value as of: Jul 3, 2026

From 26 valuation models · updated today

Share price +6.3% over the past month.

Price vs Fair Value (12 months)

₹1,624 ₹1,104 Fair Value ₹575.08 Jul 2025 Jul 2026

12‑month range ₹1,104 – ₹1,624 · fair‑value band ₹332.20 – ₹839.28 · the ₹1,440 price screens above the ₹575.08 fair value. As of Jul 3, 2026.

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Analysis

Rainbow Children's Medicare Limited (RAINBOW) currently trades at ₹1,440, while our model-based Fair Value estimate is ₹575.08 — implying the stock looks roughly 60.1% overvalued today. We read business quality at 57/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Rainbow Children's Medicare Limited generated revenue of ₹17.0B at a net margin of 16.3%. Revenue grew 24.3% year over year. It earns a return on equity of 17.9%. Net debt stands at ₹8.6B. Fundamentals as of Jul 3, 2026

Key figures & financial health

Revenue (TTM) ₹17.0B
Revenue growth (YoY) +24.3%
Net margin 16.3%
Return on equity 17.9%
Free cash flow ₹1.4B FY2026
P/E ratio 51.8
More key figures
Operating margin 22.6%
EPS (TTM) ₹27.45
EPS growth (YoY) +39.1%
Net debt ₹8.6B FY2026

Figures from reported company fundamentals (EODHD) · as of Jul 3, 2026. TTM = trailing twelve months.

About the company

Rainbow Children's Medicare Limited operates a multi-specialty paediatric, obstetrics, and gynaecology hospital chain in India. The company offers medical and healthcare services to children and women. It also provides pediatric services under brand Rainbow Children's Hospital which include newborn and pediatric intensive care; pediatric multi-specialty services; and pediatric quaternary care, such as multi-organ transplantation. In addition, the company offers women care services under Birthright brand that comprise perinatal care services, such as routine and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility support, and a range of gynecology treatments, as well as operates private pediatric DNB (Diplomate of National Board) training program offering postgraduate and fellowship opportunities to train future healthcare professionals. Rainbow Children's Medicare Limited was incorporated in 1998 and is based in Hyderabad, India.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Rainbow Children's Medicare Limited reported revenue of ₹17.0B in FY2026 versus ₹9.7B in FY2022, a compound +15.0%/yr. Reported net income was ₹2.8B in FY2026, compounding +19.1%/yr from FY2022.

Revenue +15.0%/yr
FY22 ₹9.7B
FY23 ₹11.7B
FY24 ₹13.0B
FY25 ₹15.2B
FY26 ₹17.0B
Net income +19.1%/yr
FY22 ₹1.4B
FY23 ₹2.1B
FY24 ₹2.2B
FY25 ₹2.4B
FY26 ₹2.8B

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Frequently asked questions

Is Rainbow Children's Medicare Limited (RAINBOW) undervalued?
As of Jul 3, 2026, our model estimates a fair value of ₹575.08 versus a price of ₹1,440 — about −60% (overvalued). Model-based estimate, not financial advice.
What is the fair value of RAINBOW?
Our model-based fair value for Rainbow Children's Medicare Limited is ₹575.08 (as of Jul 3, 2026), built from audited fundamentals. The current price is ₹1,440.
What is the quality score of RAINBOW?
Rainbow Children's Medicare Limited has a Quality Score of 57/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Rainbow Children's Medicare Limited (RAINBOW)?
Rainbow Children's Medicare Limited reported trailing-twelve-month revenue of about ₹17.0B (latest available figure, as of Jul 3, 2026).
What is the net profit margin of RAINBOW?
The net profit margin of Rainbow Children's Medicare Limited is about 16.3%, meaning it keeps roughly 16.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.