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Target: ₹723
CMP: ₹574.20
Star Health and Allied Insurance is a largest private health insurance company in India with leadership in the retail health segment. They have the largest and well spread distribution networks in the health insurance industry and integrated ecosystem.
The company is focused on the retail health segment, which is expected to emerge as the key driver of the overall health insurance industry in India on account of its low penetration and positive demographic realities.
The company is the largest private health insurer in India with a gross written premium of H114635 Million at the close of Fiscal 2022; the company has grown into the largest standalone health insurance company in India’s overall health insurance market, consistently ranked first in the retail health insurance market.
The company has a focus on innovative and specialised products. We remain optimistic about the overall prospects of StarHeal and expect overall gross premiums to grow a healthy CAGR over FY 22-24, led by Retail Health.
We expect the claims ratios to normalise. This should enable it to return to profitability over FY23-24E.We remain extremely positive on the business model and initiate with a Buy rating on the stock and a target price of ₹723.
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