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
With ROCE of 19.1, it has a Very Expensive valuation with a 7.4 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 -18.51%, its profits have risen by 9.6% ; the PEG ratio of the company is 5.6
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 1.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.51% 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.
-18.51%
-0.68
27.28%
Sensex
4.67%
0.39
11.83%
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
39.31%
ROCE (avg)
20.16%
ROE (avg)
17.62%
Valuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
63
Price to Book Value
9.01
EV to EBIT
38.79
EV to EBITDA
28.01
EV to Capital Employed
7.43
EV to Sales
8.97
PEG Ratio
5.60
Dividend Yield
0.22%
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
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
8What is working for the Company
OPERATING CF(Y)
Highest at Rs 385.05 Cr
DPS(Y)
Highest at Rs 3.00
NET SALES(Q)
Highest at Rs 444.80 cr
PBDIT(Q)
Highest at Rs 148.86 cr.
PBT LESS OI(Q)
Highest at Rs 94.17 cr.
-2What 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.
Operating Cash Flow - Annually
Highest at Rs 385.05 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 444.80 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 148.86 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 94.17 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 94.17 cr has Grown at 30.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 72.23 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Dividend per Share (DPS) - Annually
Highest at Rs 3.00
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
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






