Case study

RAINBOW

Rainbow Childrens Med

Mixed signals1y model +3.6%

Each stock's 10,000-path forecast, rendered as light.

0Score

Rainbow Childrens Med (RAINBOW) Stock Analysis & Case Study

Is RAINBOW a good buy? The data-driven verdict.

Rainbow Childrens Med (RAINBOW) trades at ₹1,447,on the numbers it mixed signals, a Downstox Snapshot Score of 45/100.

On the numbers, Rainbow Childrens Med (RAINBOW) mixed signals, a Downstox Snapshot Score of 45/100, weighing expensive at 52.4× earnings, ROE of 17.9%, a 55% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

RAINBOW fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹14,632 Cr
Current price
₹1,447
P/E ratio
52.4×
P/B ratio
8.93×
Book value
₹162
Dividend yield
0.24%
ROCE
18.2%
ROE
17.9%
Piotroski F-Score
4/9

Is RAINBOW overvalued? RAINBOW P/E vs its sector

RAINBOW's P/E of 52.4× sits above the sector peer median of 15.9×, so on earnings it screens richer than peers, while its 0.24% dividend yield is below the peer median of 1.65%.

RAINBOW P/E
52.4×
Peer median P/E
15.9×
RAINBOW div yield
0.24%
Peer median yield
1.65%

RAINBOW share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of RAINBOW history (7%/yr drift, 29%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
RAINBOW 2027₹1,053₹1,523₹2,198+4%
RAINBOW 2028₹937₹1,572₹2,642+7%
RAINBOW 2029₹857₹1,621₹3,074+10%
RAINBOW 2030₹804₹1,668₹3,556+13%
RAINBOW 2031₹757₹1,733₹3,929+18%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability RAINBOW goes up, or doubles?

55%
Higher in 1 year
Modelled chance the price is above today in 12 months
60%
Higher in 5 years
Modelled chance the price is above today in 5 years
21%
Doubles in 5 years
Modelled chance of reaching ₹2,942 within 5 years

The bull case for RAINBOW

  • A healthy 17.9% return on equity.
  • Strong ROCE (18.2%) shows the core business earns well above its cost of capital.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹3,074.

The bear case & risks

  • A rich 52.4× P/E leaves a thin margin of safety if growth slows.
  • A steep 8.9× price-to-book means most of the value is intangible/expectations, not assets on the books.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹857.

RAINBOW volatility & expected range, how bumpy is the ride?

Over the last 2.0 years RAINBOW compounded at 7%/year with annualized volatility of 29%. That volatility implies a 1-year 80% range of ₹1,053₹2,198, the honest backbone behind any single price target.

RAINBOW price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
3.6%
80% range₹1,053–₹2,198
P(price ↑)55%
P(price 2×)1%
3-Year Forecast
2029
₹0
Median (P50)
10.2%
80% range₹857–₹3,074
P(price ↑)58%
P(price 2×)12%
5-Year Forecast
2031
₹0
Median (P50)
17.9%
80% range₹757–₹3,929
P(price ↑)60%
P(price 2×)21%

RAINBOW price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
RAINBOW simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds RAINBOW hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the RAINBOW price target & forecast page.

RAINBOW Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. RAINBOW scores 4/9,mixed financial health.

RAINBOW MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy RAINBOW with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
UpstoxCHEAPEST28.4%3.5×
ZerodhaCHEAPEST28.4%3.5×
DhanCHEAPEST28.4%3.5×

Compare every broker on the RAINBOW MTF page.

RAINBOW vs peers,sector comparison

StockP/EDiv yieldMarket cap
RAINBOW (this stock)52.4×0.24%₹14,632 Cr
RELIANCE23.1×0.45%₹17.95L Cr
TCS14.7×3.01%₹7.69L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
INFY14.4×4.51%₹4.32L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr

About Rainbow Childrens Med: sector, index & market-cap context

Rainbow Childrens Med (RAINBOW) is a small-cap NSE-listed company, and a constituent of the Nifty 200 index group, with a market capitalisation of ₹14,632 Cr. See more Nifty 200 stocks.

How the RAINBOW Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Rainbow Childrens Med's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

RAINBOW analysis, FAQs

Is Rainbow Childrens Med (RAINBOW) a good buy?

On the numbers, Rainbow Childrens Med (RAINBOW) mixed signals, a Downstox Snapshot Score of 45/100, weighing expensive at 52.4× earnings, ROE of 17.9%, a 55% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is RAINBOW overvalued or undervalued?

RAINBOW trades at 52.4× earnings versus a peer median of 15.9×, so it screens richer than its sector peers.

What is the RAINBOW share price target for 2031?

RAINBOW's probability-weighted 2031 median target is ₹1,733, with an 80% range of ₹757₹3,929 (10,000-path Monte-Carlo).

What is the probability RAINBOW doubles in 5 years?

The modelled probability of RAINBOW reaching ₹2,942 (2×) within 5 years is 21%.

What is the bull case for RAINBOW?

A healthy 17.9% return on equity. Strong ROCE (18.2%) shows the core business earns well above its cost of capital.

What are the risks in RAINBOW?

A rich 52.4× P/E leaves a thin margin of safety if growth slows. A steep 8.9× price-to-book means most of the value is intangible/expectations, not assets on the books.

More on RAINBOW