Check Before You Invest : Rainbow Childrens Medicare Ltd

Snapshot

Q.1 Which industry/sub-sector does Rainbow Childrens Medicare Ltd belong to?

Rainbow Childrens Medicare Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.

Q.2 Is Rainbow Childrens Medicare Ltd a good quality company?

Rainbow Childrens Medicare Ltd is a good quality company, based on a consistently good 9-year financial track record.

Q.3 Is Rainbow Childrens Medicare Ltd undervalued or overvalued?

Rainbow Childrens Medicare Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Rainbow Childrens Medicare Ltd a good buy now?

Rainbow Childrens Medicare Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd revenue growth is 17.6% for FY-2025, which is above its 5-year CAGR of 15.91%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Return on capital employed is 28.54% for FY-2025, which is in line with its 5-year historical median of 29.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Return on Asset is 10.68%, which is in line with its 5-year historical median of 11.15%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Return on equity is 17.2% for FY-2025, which is below its 5-year historical median of 18.18%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Cash conversion cycle is -5 days, above its 5-year historical median of -9 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.65	0.65
ROE	17.2	18.18
ROCE	28.54	29.37
Cash Conversion Cycle	-5 days	-9 days

Q.6 Gross Profit margin of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.2% for FY-2025, which is in line with its 5-year median of 31.2%, indicating stable margins.

Q.7 Operating Profit Margin of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 32.9% for FY-2025, which is in line with its 5-year median of 32.9% indicating stable margins.

Q.8 Net Profit Margin of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Net Profit Margin is 16.33% for FY-2025, is in line with with its 5-year median of 16.33%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	31.2	31.2
Operating Profit Margin	32.9	32.9
Net Profit Margin	16.33	16.33

Q.9 Debt to Equity ratio of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Rainbow Childrens Medicare Ltd?

Rainbow Childrens Medicare Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rainbow Childrens Medicare Ltd?

Promoters hold 49.84% of the Rainbow Childrens Medicare Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rainbow Childrens Medicare Ltd vs industry peers?

Rainbow Childrens Medicare Ltd revenue CAGR is 15.91%, compared to the industry median CAGR of 10.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	17.6	10.3
Gross Profit Growth	15.2	18
Operating Profit Growth	14.9	15.4
Net Profit Growth	10.7	22.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.65	0.73
ROE	17.2	13.91
ROCE	28.54	17.77
Cash Conversion Cycle (days)	-4.65	4

Valuation & price assessment

Q.1 Stock return of Rainbow Childrens Medicare Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 16.26% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	16.3%	-7.9%

Q.3 Valuation ratios of Rainbow Childrens Medicare Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	51.91	54.69	36.99
Price to Book	7.72	9.26	3.61
Price to Sales	8.54	9.29	4.24
EV to EBITDA	23.82	25.66	17.74

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