Why is Rainbow Childrens Medicare Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 14.50% of over the last 5 years
2
Flat results in Dec 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 14.59 times
3
With ROCE of 19.1, it has a Expensive valuation with a 6.6 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 -13.16%, its profits have risen by 9.6% ; the PEG ratio of the company is 4.9
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 9.89% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.16% returns
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, Low Return
Absolute
Risk Adjusted
Volatility
Rainbow Child.
-13.16%
-0.51
25.88%
Sensex
8.49%
0.76
11.24%
Quality key factors
Factor
Value
Sales Growth (5y)
15.69%
EBIT Growth (5y)
14.50%
EBIT to Interest (avg)
4.97
Debt to EBITDA (avg)
1.65
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
0.70
Tax Ratio
26.12%
Dividend Payout Ratio
14.03%
Pledged Shares
0
Institutional Holding
38.72%
ROCE (avg)
20.16%
ROE (avg)
17.62%
Valuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
58
Price to Book Value
7.95
EV to EBIT
34.35
EV to EBITDA
24.80
EV to Capital Employed
6.58
EV to Sales
7.94
PEG Ratio
4.94
Dividend Yield
0.25%
ROCE (Latest)
19.14%
ROE (Latest)
16.72%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
3What is working for the Company
NET SALES(Q)
Highest at Rs 445.45 cr
PBT LESS OI(Q)
At Rs 87.18 cr has Grown at 20.7% (vs previous 4Q average
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 14.59 times
Loading Valuation Snapshot...
Here's what is working for Rainbow Child.
Net Sales - Quarterly
Highest at Rs 445.45 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 87.18 cr has Grown at 20.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 72.26 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Rainbow Child.
Debtors Turnover Ratio- Half Yearly
Lowest at 14.59 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






