Rainbow Childrens Medicare Ltd - Stock Valuation and Financial Performance

BSE: 543524 | NSE: RAINBOW | Hospital & Healthcare Services | Small Cap

RainbowChildrenS Med Share Price

1,612.25 130.00 8.77%
as on 31-Oct'24 16:01

DeciZen - make an informed investing decision on RainbowChildrenS Med

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Rainbow Childrens Medicare stock performance -

mw4me loader
P/E Ratio (SA):
71.92
Market Cap:
16,372.7 Cr.
52-wk low:
993.7
52-wk high:
1,649

Is Rainbow Childrens Medicare Ltd an attractive stock to invest in?

1. Is Rainbow Childrens Medicare Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Rainbow Childrens Medicare Ltd is a good quality company.

2. Is Rainbow Childrens Medicare Ltd undervalued or overvalued?

The key valuation ratios of Rainbow Childrens Medicare Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Rainbow Childrens Medicare Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Rainbow Childrens Medicare Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of RainbowChildrenS Med:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rainbow Childrens Medicare Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 0%0%12.9%14.4%20.3%32.9%21.9%40.5%37.2%29.4%-
Value Creation
Index
NANA0.00.10.51.40.61.91.81.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 003214025436956149251,1141,2371,366
Sales YoY Gr.-NANA25.1%35.1%28.1%-11.6%50.5%20.5%11%-
Adj EPS 003.546.67.95.515.120.621.222.4
YoY Gr.-NANA15.2%64.8%18.9%-30.3%175%36.8%2.7%-
BVPS (₹) 0034.938.744.74651.666.5107.2125.7134.7
Adj Net
Profit
0031.436.159.670.949.4142209215228
Cash Flow from Ops. 0035.647.995.9178142214316306-
Debt/CF from Ops. 000.40.30.50.30.30.200-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NA17.9%26.3%11%
Adj EPS NA26.2%56.9%2.7%
BVPSNA23%34.5%17.2%
Share Price - - - 52.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
009.610.615.416.91125.524.318.117.2
Op. Profit
Mgn %
0017.117.320.7302732.334.633.732.9
Net Profit
Mgn %
009.891110.2815.318.817.416.7
Debt to
Equity
000.100.10.10.10.1000
Working Cap
Days
000121781041378614917878
Cash Conv.
Cycle
000-18-7-5-4-9-13-960

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 26.25%

Net Profit is growing at healthy rate in last 3 years 56.88%

Sales growth is good in last 4 quarters at 15.39%

Return on Equity has declined versus last 3 years average to 17.20%

Latest Financials - Rainbow Childrens Medicare Ltd.

Standalone Consolidated
TTM EPS (₹) 22.4 22.8
TTM Sales (₹ Cr.) 1,366 1,425
BVPS (₹.) 134.7 132.3
Reserves (₹ Cr.) 1,266 1,242
P/BV 11.97 12.19
PE 71.92 70.72
From the Market
52 Week Low / High (₹) 993.70 / 1649.00
All Time Low / High (₹) 410.00 / 1649.00
Market Cap (₹ Cr.) 16,373
Equity (₹ Cr.) 101.6
Face Value (₹) 10
Industry PE 41.2

Management X-Ray of RainbowChildrenS Med:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of RainbowChildrenS Med

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales3214025436956149251,1141,237
Operating Expenses 266332430486449626729820
Manufacturing Costs2936189236217270362412
Material Costs52608010297188150157
Employee Cost 69777910296109136169
Other Costs 116159824638598082
Operating Profit 5570112209166299385417
Operating Profit Margin (%) 17.1%17.3%20.7%30.0%27.0%32.3%34.6%33.7%
Other Income 111091212213137
Interest 3464744535559
Depreciation 22283665687784105
Exceptional Items 000000-50
Profit Before Tax 41477910966190273289
Tax 1011203816476774
Profit After Tax 3136607149142206215
PAT Margin (%) 9.8%9.1%11.0%10.2%8.0%15.4%18.5%17.4%
Adjusted EPS (₹)3.44.06.67.95.515.120.321.2
Dividend Payout Ratio (%)8%12%7%12%0%13%15%14%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 3263594144264766361,0881,276
Share Capital 2055555555105102102
Reserves 3063043593714215319871,174
Minority Interest00000000
Debt15125050412700
Long Term Debt10105046412700
Short Term Debt52040000
Trade Payables2024344251597576
Others Liabilities 724958573501551564773
Total Liabilities 4334455551,0911,0681,2741,7282,125

Fixed Assets

Gross Block1923404158099351,0951,2591,693
Accumulated Depreciation224883146213283368474
Net Fixed Assets1712933336637228138911,219
CWIP 71221432962320
Investments 605243742105346
Inventories767159141823
Trade Receivables1415293745415172
Cash Equivalents 8836699485175377
Others Assets1408392216141183603439
Total Assets 4334455551,0911,0681,2741,7282,125

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 364896178142214316306
PBT 41477910966190273289
Adjustment 122032102100110116130
Changes in Working Capital -10-6-0-132-235-27
Tax Paid -8-13-15-20-27-62-78-86
Cash Flow From Investing Activity -33-42-125-123-87-169-460-214
Capex -56-151-80-61-75-58-140-352
Net Investments -45-30-25-18-103-34594
Others 28103-16-367-82445
Cash Flow From Financing Activity -1-731-54-56-41148-97
Net Proceeds from Shares 00000262661
Net Proceeds from Borrowing 131401-5-6-400
Interest Paid -1-2-1-5-5-5-30
Dividend Paid -3-3-6-170-9-20-30
Others -10-3-2-33-46-48-55-68
Net Cash Flow 2-221-243-4
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)9.961115.8817.3411.2326.124.0318.18
ROCE (%)12.9414.3620.3132.9421.8840.4937.1729.37
Asset Turnover Ratio0.740.921.090.840.570.790.740.64
PAT to CFO Conversion(x)1.161.331.62.512.91.511.531.42
Working Capital Days
Receivable Days1613151724171518
Inventory Days86467556
Payable Days142135132136175107163176

Rainbow Childrens Medicare Ltd Stock News

Rainbow Childrens Medicare Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of RainbowChildrenS Med on 31-Oct-2024 16:01 is ₹1,612.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Oct-2024 16:01 the market cap of RainbowChildrenS Med stood at ₹16,372.7.
The latest P/E ratio of RainbowChildrenS Med as of 31-Oct-2024 16:01 is 71.92.
The latest P/B ratio of RainbowChildrenS Med as of 31-Oct-2024 16:01 is 11.97.
The 52-week high of RainbowChildrenS Med is ₹1,649 and the 52-week low is ₹993.7.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of RainbowChildrenS Med is ₹1,366 ( Cr.) .

About Rainbow Childrens Medicare Ltd

The company was originally incorporated as ‘Rainbow Children’s Medicare Private Limited’ under the provisions of the Companies Act, 1956, as a private limited company, at Hyderabad, Telangana, pursuant to a certificate of incorporation dated August 7, 1998, issued by the Registrar of Companies, Hyderabad at Telangana (RoC). Subsequently, the company was converted into a public limited company, and the name of the company was changed to ‘Rainbow Children’s Medicare Limited’ pursuant to a special resolution passed by the Shareholders of the company on November 3, 2021 and a fresh certificate of incorporation was consequently issued by the RoC on November 20, 2021 under the Companies Act, 2013.

Rainbow Children’s Medicare is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain in India. The company’s core specialties are pediatrics, which includes newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multi organ transplants); and obstetrics and gynecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care. The company established its first pediatric specialty hospital in 1999 in Hyderabad, Telangana. Since then, under the leadership of Dr. Ramesh Kancharla, its founding Promoter, it has established its reputation as a leader in multi-specialty pediatric services, with strong clinical expertise in managing complex diseases. It has also expanded its operations to include obstetrics and gynecology services, whereby it offers comprehensive perinatal services to patients.

The company follows a doctor engagement model whereby most of its core specialists work exclusively at its hospitals on a full-time retainer basis. This model ensures that most of its core specialists are available 24/7 on a roster basis at its hospitals, which is particularly important for children’s emergency, neonatal and pediatric intensive care services. The company’s fulltime doctor model along with a strong middle grade doctor pool ensures seamless healthcare delivery across its hospitals, which has resulted in a high degree of patient satisfaction. A number of its doctors in neonatal, pediatric intensive care, pediatric sub specialties, obstetrics and gynecology are trained or possess qualifications from the United Kingdom, United States, Canada and Australia, which provides it with a competitive advantage.

Business area of the company

Rainbow Children's Medicare operates a multi-speciality pediatric, obstetrics and gynaecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care, obstetrics and gynaecology, which includes normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic and fertility care.

Key awards, accreditations or recognitions:

  • 2010: Rainbow Children’s Hospital, Hyderabad received CNBC ICICI Lombard Award for specialty hospital pediatrics.
  • 2014: Rainbow Hospitals, Hyderabad received the CNBC ICICI Lombard Award for the best single specialty hospital pediatrics.
  • 2015: The Company was awarded a certificate of recognition for the project “Rainbow digital” at the 4th Annual Healthcare Leaders’ Awards.
  • 2015: The Company was awarded the Best Hospital in Paediatric & Gynaecology Care at the Asia Healthcare Excellence Awards.
  • 2016: The Company was awarded a certificate of merit for “The best mobile App” at World Marketing Congress.
  • 2017: “Rainbow Children’s Hospital” was awarded the best hospital of the year in pediatrics at Times Health Achievers Telugu States.
  • 2017: The Company was awarded the “Best Single Specialty Hospital” at World Health & Wellness Congress & Awards.
  • 2018: BirthRight by Rainbow Hospitals was awarded India’s No.1 Obstetrics Hospital by the Times of India.
  • 2019: Rainbow Children’s Hospital was awarded best hospital of the year 2019 in Pediatrics at Times Healthcare Achievers Telugu States.
  • 2019: BirthRight by Rainbow Hospitals was awarded the best hospital of the year 2019 in obstetrics and gynecology award at Times Healthcare Achievers Telugu States.
  • 2020: The company was certified as a great workplace by Great Place to Work Institute, India.
  • 2020: The Company was awarded the Healthcare Leadership Award at Karnataka Healthcare Leadership Awards, 2020.
  • 2021 Rainbow Children’s Hospital was awarded as the best standalone pediatrics hospital in India by The Week.
  • 2022: The Company has been certified as a great place to work after an assessment conducted by Great Place to Work Institute, India.
  • 2022: BirthRight Fertility by Rainbow Hospitals was granted the status of ‘accredited’ by Joint Commission International.

Major events and milestones

  • 1999: Established company’s first hospital at Banjara Hills.
  • 2005: Expansion of Banjara Hills Facility to tertiary care.
  • 2007: Established Hospital at Vijayawada.
  • 2009: Established Hospital at Vikrampuri.
  • 2010: Opening of outpatient clinic at Madhapur.
  • 2010: Established IVF facility at Madhapur.
  • 2013: Established hospital at Kondapur.
  • 2013: British International Investment plc (formerly known as CDC Group plc) subscribed to 1,146,771 equity shares and 1,146,771 Series A CCPS of the Company.
  • 2013: Rainbow Institute of Medical Sciences Private Limited changed in place of business to 332, 4B, C1, Currency Nagar, Vijayawada-8.
  • 2015: Established hospital at Hydernagar.
  • 2015: Established hospital at Marathalli.
  • 2016: CDC India subscribed to 1,133,309 Series B CCPS of Company.
  • 2016: Established Hospital at Bannerghatta Road, Bangalore.
  • 2016: Established hospital at LB Nagar, Hyderabad, Telangana.
  • 2017: Madhukar Rainbow Hospital at New Delhi commenced operations.
  • 2018: Established Hospital at Guindy, Chennai.
  • 2019: One of the company’s subsidiaries, Rosewalk Healthcare Private Limited received certificate of establishment.
  • 2019: Started outpatient and IVF facility at Kondapur.
  • 2019: Commencement of Rainbow Children’s Heart Institute (a unit of Rainbow Speciality Hospitals Pvt Ltd).
  • 2020: Established hospital at Byatarayanapura village, Yelahanka, Hubli, Bengaluru.
  • 2020: Established hospital at Vizag.
  • 2021: Relocated and expanded its hospital at Vikrampuri.
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