Saturday, June 22, 2024
HomeMarket NewsBroker’s call: Star Health (Buy): ₹649.80

Broker’s call: Star Health (Buy): ₹649.80

Published on

Latest articles

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in Kotak General

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in...

Vodafone Idea shares zoom 14% today; key technical levels to watch out for

Vodafone Idea shares zoom 14% today; key technical levels to watch out for Vodafone Idea...

Nadeem Amin is the New President for Netstal Americas

Nadeem Amin is the New President for Netstal Americas Netstal appoints Nadeem Amin as its...

SCREEN Launches High-Density SU Ink For Uncoated Papers Used By Truepress JET 520HD Mono

SCREEN Launches High-Density SU Ink For Uncoated Papers Used By Truepress JET 520HD Mono It...


Target: ₹730

CMP: ₹649.80

Star Health and Allied Insurance is expected to clock 20 per cent retail health premium CAGR over FY23-25 led by: increasing sum assured per policy, price hike in its flagship product, and deeper penetration that is driving growth in the number of policies.

The management is intensely focusing on growing the business through the banca channel, with the help of the benefit-based products that have much higher profitability than retail health products. The share of banca stood at 5 per cent in FY23 and is expected to double by FY25. 

Star Health has maintained its guidance of reaching a combined ratio of 93-95 per cent, with a bias towards the lower end.

We expect a 19 per cent NEP CAGR over FY23-25 and project the combined ratio to improve to 92.5 per cent in FY25 from 95 per cent in FY23. These should result in a PAT CAGR of 47 per cent over FY23-25 and RoE improving to 16 per cent in FY25 from 11 per cenr in FY23. We reiterate our BUY rating with a 1-year TP of ₹730 (premised on 32x FY25E EPS).





Source link

More like this

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in Kotak General

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in...

Vodafone Idea shares zoom 14% today; key technical levels to watch out for

Vodafone Idea shares zoom 14% today; key technical levels to watch out for Vodafone Idea...

Nadeem Amin is the New President for Netstal Americas

Nadeem Amin is the New President for Netstal Americas Netstal appoints Nadeem Amin as its...