India's Rainbow Children's Medicare falls on HSBC downgrade

Rainbow Childrens Medicare

16/08/2024 06:14

** Shares of Rainbow Children's Medicare  RAIB.NS  fall
about 3% to 1,187.5 rupees apiece
    ** HSBC downgrades its rating on the hospital-chain operator
to "hold" from "buy", slashes PT to 1,290 rupees from 1,500
rupees 
    ** "Imminent cost buildup (from capacity addition) will keep
its profit margin range-bound in the near-to-medium term," say
Damayanti Kerai and Gaurang Sakare, healthcare analysts at HSBC
Securities and Capital Markets 
    ** Delays in Gurugram and break-even for new units could be
downside risks, say analysts
    ** Brokerage trims fiscal year 2025-27 earnings per share
(EPS) estimates by 1.2%-9.1%
    ** RAIB reported drop in profit after tax in June quarter
due to higher depreciation and amortisation costs and  finance
costs, post market hours on Tuesday
    ** Stock down 0.6% in 2024 so far

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))