I assume it is happening because of latest supreme court’s order to Govt. to standardize hospital charges.
Link- SC directs Centre to standardise healthcare procedure rate: How will it impact hospitals?
Rainbow enjoys over 35% OPM. That’s a big number for a hospital.
If Govt. intervenes here, the OPM is likely to go lower.
If that happens then why should market pay 50+ PE for Rainbow.
Hence the selling.
My thoughts only.
Disc: not invested
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