Rainbow Children's Medicare Limited (RAINBOW.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+52.7%

₹1,896.88

vs ₹1,241.90 price

Levered DCF

₹1,327.52

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

—

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	42.43×	57.52×	63.24×	34.97×	30.52×	105.93×	76.05×	94.98×
P/B	7.17×	9.5×	10.9×	6.96×	7.15×	9.49×	10.45×	11.39×
P/S	6.93×	9.2×	10.58×	6.28×	4.42×	6.52×	5.89×	7.81×
EV / EBITDA	21.6×	29.99×	33.53×	19.85×	15.99×	29.17×	23.96×	31.63×
Gross margin	39.5%	71.4%	71.8%	71.9%	66.1%	65.3%	66.8%	67.2%
Operating margin	23.1%	44.8%	45.9%	46.2%	42.8%	63.4%	64.4%	64.9%
Net margin	16.3%	16.1%	16.7%	18.0%	14.2%	6.2%	7.7%	8.2%
Current ratio	3.59×	5.46×	4.16×	3.44×	2.32×	1.61×	1.56×	1.45×
Debt / equity	0.54×	0.52×	0.61×	0.54×	0.96×	1.16×	1.21×	1.25×
Interest coverage	5.07×	8.85×	9.51×	9.38×	7.43×	8.89×	9.6×	8.39×
Dividend yield	0.3%	0.2%	0.2%	0.3%	0.2%	0.0%	0.4%	0.1%
Payout ratio	10.9%	12.5%	14.2%	9.6%	6.7%	0.0%	30.0%	12.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.9%	16.6%	17.2%	19.9%	22.9%	9.0%	13.7%	12.0%
Return on invested capital	11.8%	22.4%	21.6%	25.0%	23.4%	30.1%	30.1%	32.4%
Return on assets	10.0%	10.2%	10.0%	11.9%	10.7%	3.7%	5.5%	4.8%
Free cash flow yield	1.2%	1.8%	-0.2%	2.5%	3.7%	1.6%	2.3%	0.9%
Earnings yield	2.4%	1.7%	1.6%	2.9%	3.2%	0.9%	1.3%	1.1%
Enterprise value	₹126.7B	₹146.9B	₹144.8B	₹79.3B	₹48.8B	₹47.5B	₹47.2B	₹47B
Net debt / EBITDA	1.46×	1.52×	1.75×	1.39×	1.87×	3.15×	2.45×	3.1×
Cash conversion cycle (days)	2	-35	-37	-48	-56	-29	-29	-45