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●PositiveTier 1

Rainbow Children's Medicare LtdNSE:RAINBOW

Healthcare · ₹14,814 Cr market cap · covered for 1 quarter since Q4 2026

Current view Q4 2026

India's largest children's-hospital chain. It has built lots of new beds that are still half-empty, so profits can grow just by filling them. New CEO targets 20% growth; management delivers consistently.

Latest exchange filings last 5 · 5 after Q4 2026

Exchange filings, with the company's own one-line summary, read off the same page as the figures. Screener publishes only the most recent few, so this is the last 5 — not everything filed since your note, and a quiet-looking list is not proof of a quiet quarter. A filing is marked new when it is dated after the end of the quarter your note covers. Not scored, and not a judgement — a routine repayment notice and a takeover sit in the same list.

AI concall report · Q4 2026

The full earnings-call read behind this view — what management promised, what they delivered, and the earning trigger.

✨ Read the report ↗

Growth Q4 2026

Metric This year vs lastYoY · vs Q4 2025 vs the quarter beforeQoQ, sequential · vs Q3 2026 3-year yearly average3Y CAGR · compounded 5-year yearly average5Y CAGR · compounded
Sales▲ +24.3%+3.4%+13.2%+21.2%
Operating profit▲ +26.1%−1.4%+11.0%+27.5%
EPS▲ +36.8%+6.3%+9.7%+24.7%
PAT▲ +36.8%+5.4%——

Tinted rows drive the Tier. Tier = the weaker of YoY Sales and YoY PAT growth. Here the weaker is Sales at +24.3%, which is ≥ 20% → Tier 1.

QoQ is sequential, not a trend. For most Indian companies the March quarter is seasonally the largest, so a June-quarter fall against it is a calendar effect. Only the YoY column feeds the Tier.

Multibagger potential Average51/100

Growing, but too slowly to re-price. Profit per share grew 10% a year. A big re-pricing usually needs more than 15% a year, so the score is capped no matter how cheap it looks.

Doubling needs a price-tag it has never reached

₹1,373 → ₹2,745 needs the P/E at 76× — it is 50× today, and has ranged 38× to 74× over the last 5 years. The rest would come from earnings growing as they have.

If this keeps up for 3 more years ×1.4 +44% — profit growing 10% a year, and buyers paying 55× for it again

What you pay for its profitlog scale · 5-year range

38×5-year low 50×today 55×usual level 74×5-year high 76×to double 114×to triple

Tripling needs 114× — never traded above 74× in 5 years.

The Multibaggerearnings climbing and buyers already paying more for them⚠ low growth
Is it cheap right now?P/E 50× is 0.92× its own 5-year average of 55× — below it; forward PEG 4.72 — expensive for its growth 10/25
Has the market paid for this growth yet?ΔMultiple ×1.01 a year (×1.02 over 3 years) — multiple flat 6/15
Is the growth real, or flattered?EPS fully backed by sales; QoQ holding 30/30
What does it earn on its own money?earns 17% on its own book — fair 5/10
Is the price trend agreeing?below all three EMAs — falling knife 0/20
Price vs its book value 8.5×P/B — ₹162 of book value per share
Price vs next year’s profit 46×forward P/E — what an entry pays now
Price over the last year ×1.10earnings ×1.10, price-tag ×1.01

Re-rated already, on growth that doesn't fully back it.

How this is calculated

This is arithmetic, not a forecast — Return = ΔEPS × ΔMultiple. It says what would have to be true, not how likely it is, and "earnings keep growing at this rate for three more years" is the assumption doing the most work. This is a mid-cap at ₹14,814 cr, so the odds of a re-rate are not fighting its own size.

Band capped: growth of 9.7% is below the 15% bar a re-rate needs.

Growth rate used: 9.7% — the weakest of EPS / Sales / Op-profit from 3-year EPS CAGR. Latest quarter reads 37%.

How it compares with its rivals Healthcare · 6 of 30 listed

These are the industry's largest names rather than companies of its own size, so the columns are worth reading straight across — a ranking against them would only be restating the size gap.

Company PriceP/ESizeROCE Profitlast qtr Saleslast qtr
Rainbow Child. ₹1,460 51.8× ₹14,829 Cr 17.4% +13.2% +33.2%
Apollo Hospitals ₹8,827 60.3× ₹1.27 L Cr 17.4% +34.2% +20.6%
Max Healthcare ₹1,052 68.4× ₹1.02 L Cr 14.7% +4.9% +16.7%
Manipal Health ₹738 109.6× ₹97,055 Cr 12.1% −7.9% +38.1%
Fortis Health. ₹895 63.4× ₹67,588 Cr 13.4% +3.4% +17.5%
Aster DM Quality ₹764 184.5× ₹66,574 Cr 11.6% −46.1% +21.6%

Screener's own peer group, from the request already made for the industry P/E. It serves the industry's largest names by market cap, not companies of a similar size, so treat this as context rather than a like-for-like table; this company is always shown. On a phone the price, size and sales columns are dropped rather than pushed off the edge. Not part of the score.

Business quality to Jun 2026

Are the margins widening? slightly narrower than 3 years earlier operating margin 31% → 29% over 3 years
Did the profit turn into cash? most of it arrived as cash 95% last year, 96% over three · free cash flow ₹204 cr, positive in 4 of 5 years
Is the growth borrowed? borrowed about as much as it owns ₹891 cr — 0.54× its own equity (was 0.52×)
Is it being collected? collection is steady 22 days to collect, up 3 in a year · cash cycle −73 days
Who has been buying? the promoters have held steady promoters 49.8%, 49.8% → 49.8% over 2.8 years · FIIs 16.0% (−7.6) · DIIs 22.6% (+7.1) · shareholders 79,187 → 89,305
What does it earn on its capital? earns a fair return on its capital ROCE 17.4% · ROE 15.9%

Fetched from the filings, not typed — and deliberately not part of the score. These are the questions the score cannot ask: it reads growth, price and trend, so a company can score well while its profit never becomes cash. Weigh these beside the note, not against the number.

Screener's own checklist not mine, not the score

In its favour

  • Company's median sales growth is 22.8% of last 10 years

Against it

  • Stock is trading at 9.06 times its book value

Generated by screener.in from a fixed checklist — not written by me and not an input to the score. It is here as a second machine opinion to weigh against the note; where it disagrees with the view above, the note is the considered one.