Rainbow Childrens Medicare Ltd. share price target

Rainbow Children’s Medicare reported a robust performance in Q1FY27, driven by strong patient volume growth and improved operating efficiency with revenue, EBITDA and PAT increasing by 33%, 30% and 13% y/y, respectively.

over or under performance to benchmark index Rainbow Children's Medicare Ltd operates India's largest paediatric-focused hospital chain, integrating advanced child healthcare with maternal and fertility services, with 24 hospitals and 5 clinics across 6 states. Rainbow is India's largest paediatric-focused multi-speciality hospital chain, driven by its asset-light hub-and-spoke model with higher margins, robust free cash...

RAINBOW's reported strong Q4FY26 EBITDA with growth of 26% YoY; more important organic growth was in double digits which is likely to sustain. RAINBOW has added ~780 beds over the past two years, effectively concluding its current expansion cycle. Overall, we see profitability to improve from FY27 with 18.5% EBITDA CAGR over FY2628E vs 13% CAGR over FY24-26 as new capacities ramp up. Company enjoys higher margins, strong FCF generation with net cash B/S, and healthy return ratios because of the asset light hub-and-spoke model, it being the only integrated multi-specialty pediatric hospital chain in India offering comprehensive services, and its full time doctor engagement model. Strategic expansion across its core markets in South India...

Expanding into new regions with domain expertise About the stock: Rainbow Children's Medicare Limited (RCML) is a leading chain RCML registered blended ARPOB of 60,141 with occupancy at 46.3%...

In line with ARe and consensus estimates, Rainbow Children’s Medicare reported decent set of number in Q3FY26, with revenue/EBITDA/PAT growing by 12/9/6% y/y.

capex to maintain growth momentum- RCML's expertise in the most case-sensitive healthcare cohort that is paediatric and perinatal care encompassing areas like neurology, nephrology, oncology and cardiology among others and its efficient synergy across paediatric services and perinatal services makes it a standout player among peers. The company has recently added beds in Bengaluru's Electronic City (90 beds) and Hennur (60 beds) in expected to start shortly. Coimbatore (130 beds) project is under development while for Gurugram Sector 44 (325 beds) and...

We maintain our BUY recommendation on the stock.

We initiate coverage on Rainbow Children's Medicare with a BUY recommendation and a DCF based Target Price (TP) of Rs 1,625/share (EV/EBITDA of 23x H1FY28E EBITDA), implying an upside of 20% from the CMP.

Total ~350 beds are expected to become operational in FY26 Rs1.04bn, in line with our estimates. RAINBOW enjoys higher margins, strong asset-light hub-and-spoke model, it being the only integrated multi-specialty pediatric hospital chain in India offering comprehensive services, and its fulltime doctor engagement model. Strategic expansion across its core markets in...

RAINBOW's Q4FY25 consolidated EBITDA grew by 9% YoY (down 15% QoQ) to Rs1.15bn, but 5% below our estimates due to weaker occupancy. RAINBOW enjoys higher margins, strong FCF generation with net cash B/S, and healthy...

Rainbow’s Q3FY25 print was largely in line with our estimates as revenue/EBITDA grew 18%/14% YoY, respectively. Ramp up in new hospitals remains strong with breakeven expected for Hyderabad hospitals (commissioned during Q4FY24) within the next quarter.

Broadly in line with the consensus and ARe, Rainbow Children’s Medicare reported reasonable Q3 figures with revenue/EBITDA/PAT up 19%/14%/11% y/y.

Rainbow is one of the largest hospital chains in India with pure-play focus on pediatric needs. It operates through a hub and spoke model and its operations are spread across 6 cities including key metro towns like Hyderabad, Chennai, Bengaluru and New Delhi. Its network includes 16 hospitals which house ~1,655 beds and 3 outpatient clinics.

Company is bringing the issue at price band of Rs 516-542 per share at p/e multiple of 32x on pre issue FY21 eps basis. RHCL being leading pediatric multi-specialty healthcare chain with strong clinical expertise in managing complex diseases follows Hub-and-spoke model that provides synergies .RHCL has strong track record of growth, operational and financial performance and experienced senior management team with strong institutional shareholder but looking after current...

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