Stock To Buy: Midcap Medicare Stock Jumped 60.48% Within 1 Yr, ICICI Direct Sees 17% Upside

ICICI Direct has come up with a "Buy" rating on Rainbow Children's Medicare Ltd. (RCML), a midcap medicare (Healthcare) stock. The brokerage has estimated a target price of Rs 840 for the stock, claiming a 17% potential upside from its current level. It has a market capitalisation of Rs 7,333.50 crore.

Stock's performance Over the past 5 Years

RCML's stock last traded at Rs 722.50 apiece, up 2.83% from the previous close. It recorded 52 week low on 17 May 2022 at Rs 410 apiece and 52 week high on 16 November 2022 at Rs 886.45 apiece, respectively. It was listed on 10 May 2022, according to NSE.

Since its listing date, it has given 60.48% positive returns. In the past 1 week, the share declined 2.44%. Whereas in the past 1 month, it declined by 2.44%, and in 3 months it declined by 5.12%. It gained 17.15% in the past 6 months.

Buy Stock for a Target Price of Rs 840/share

According to ICICI Direct, RCML's share price has grown by 51.7% since its listing in May 2022. "We initiate coverage under Stock Tales format with a BUY rating and a target price of Rs 840/share. We value RCML at 19x FY25E EV/EBITDA to arrive at a target price of Rs 840," the brokerage has said.

About -Rainbow Children's Medicare Ltd.

Rainbow Children's Medicare (RCML) is a leading chain of paediatric multi-speciality and perinatal hospitals in India, operating 16 hospitals and three clinics in six cities, with a total bed capacity of 1,655 beds.

Disclaimer - The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.