Rainbow Children’s Hospitals: Expansion roadmap provides strong growth visibility

研报英文原文证据摘录

Rainbow Children’s Hospitals: Expansion roadmap provides strong growth visibility

Bansi Desai, CFA AC Asia Pacific Equity Research

(91 22) 6157 3581 31 July 2026 J P M O R G A N

bansi.desai@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

Rainbow has established a strong presence in the pediatric and

maternity market, which we expect to show an attractive 20-

25% CAGR over FY26-29. We believe it is distinctively

positioned as the only pediatric-focused hospital chain with

highly specialized offerings, which provides it with a significant

competitive advantage over most of its peers. The success of its

hub-and-spoke model in Hyderabad (the core market) is well

replicated in Chennai and Bengaluru. While Rainbow will

continue to add more beds in its existing markets of Andhra

YTD 1m 3m 12m Pradesh, Bengaluru and Chennai, it is also evaluating an entry

Abs 15.9% 7.8% 21.8% 0.0% into new geographies to drive higher growth. We forecast a

Rel 22.9% 5.9% 20.4% 1.9%

healthy ~22% EBITDA CAGR over the next three years with

Company Data incremental upside from inorganic opportunities. Maintain OW.

Shares O/S (mn) 102

Valuation52-week range (Rs) 1,624.95-1,008.75

Market cap ($ mn) 1,619 Our Sep-27 PT of Rs2,000 is based on a 22x Sep-28E EV/

Exchange rate 95.68 EBITDA. Our target multiple implies an EV/EBITDA multiple

Free float (%) 45.8%

3M ADV (mn) 0.15 of ~25x on Sep-28E pre-IndAS EBITDA, a ~10-15% discount

3M ADV ($ mn) 2.2 to peers like APHS and Fortis to account for Rainbow’s higher

Volatility (90 Day) 23 exposure to seasonality-driven demand.

Index NIFTY

BBG ANR (Buy | Hold | Sell) 16|0|0

Key Metrics (FYE Mar) Performance Drivers

Rs in millions FY26A FY27E FY28E FY29E

Financial Estimates

Revenue 17,031 21,003 25,014 30,615

Adj.