Healthcare
Hospitals
from 1,546 today
RAINBOW reported strong Q1FY27 EBITDA with growth of 30% YoY, aided by organic growth of 24% YoY. Profitability is expected to improve from FY27 with a 22% EBITDA CAGR over FY26-28E as new capacities ramp up, leading to a maintained 'BUY' rating with a revised target price of INR 1,900/share.
Focus remains on ramping up the new hospitals. We value the stock at a historic average 1-yr fwd P/E of 46x on FY8E EPS of Rs. 37.4 and arrive at a target price of Rs. 1,722.
Rainbow reported Q1FY27 revenue and earnings below expectations, impacted by seasonal softness and muted growth in mature assets. Management remains confident in its long-term trajectory, targeting 20% medium-term revenue growth and a return to 55-60% occupancy levels.
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