ScoreWhy is Rainbow Childrens Medicare Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 14.50% of over the last 5 years
2
With ROCE of 19.1, it has a Very Expensive valuation with a 7.4 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -19.29%, its profits have risen by 9.6% ; the PEG ratio of the company is 5.6
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.37% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.29% returns
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.91%
EBIT Growth (5y)
15.53%
EBIT to Interest (avg)
4.81
Debt to EBITDA (avg)
1.65
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
0.70
Tax Ratio
25.41%
Dividend Payout Ratio
14.03%
Pledged Shares
0
Institutional Holding
38.72%
ROCE (avg)
20.16%
ROE (avg)
17.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
45
Industry P/E
56
Price to Book Value
7.70
EV to EBIT
32.56
EV to EBITDA
23.46
EV to Capital Employed
6.38
EV to Sales
7.48
PEG Ratio
5.53
Dividend Yield
0.26%
ROCE (Latest)
19.14%
ROE (Latest)
16.72%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
NET SALES(Q)
Highest at Rs 445.45 cr
PBT LESS OI(Q)
At Rs 87.18 cr has Grown at 20.7% (vs previous 4Q average
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 14.59 times
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Here's what is working for Rainbow Child.
Net Sales - Quarterly
Highest at Rs 445.45 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 87.18 cr has Grown at 20.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 72.26 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Rainbow Child.
Debtors Turnover Ratio- Half Yearly
Lowest at 14.59 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
