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Emkay Global has buy call on Star Health and Allied Insurance Company with a target price of Rs 1040. The current market price of Star Health and Allied Insurance Company Ltd. is Rs 724. Time period given by analyst is one year when Star Health and Allied Insurance Company Ltd. price can reach defined target.
Star Health and Allied Insurance Company Ltd., incorporated in the year 2005, is a Small Cap company (having a market cap of Rs 41880.75 Crore) operating in Financial Services sector.
Star Health and Allied Insurance Company Ltd. key Products/Revenue Segments include Income From Insurance Products, Interest & Dividend and Income From Sale Of Share & Securities for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company has reported a Standalone Total Income of Rs -729.69 Crore, up 226.64 % from last quarter Total Income of Rs -223.39 Crore and up 138.98 % from last year same quarter Total Income of Rs -305.34 Crore. Company has reported net profit after tax of Rs -578.37 Crore in latest quarter.
Investment Rationale
Star Health reported a weak set of numbers in Q3FY22, with a claim ratio of ~105%, a combined ratio of 135% and a net loss of Rs5.7bn. The numbers of Q3 reflect another imperfect quarter in a row due to a double whammy of Covid-19-led hospitalization along with an increased severity and a normalized frequency of non-Covid claims. With Omicron wave turning out to be relatively benign and the company's action on product pricing and operating expenses, the brokerage expects the normalcy in the company's numbers to come back in FY23. Notwithstanding recent turbulence, Star Health has built a strong moat in the highly attractive retail health market and is well poised to grow profitably over the medium to long term. It reiterates Buy rating on the stock with a revised TP of Rs1,040.
Promoter/FII Holdings
Promoters held 58.9 per cent stake in the company as of 31-Dec-2021, while FIIs owned 35.03 per cent, DIIs 2.32 per cent.
Star Health and Allied Insurance Company Ltd., incorporated in the year 2005, is a Small Cap company (having a market cap of Rs 41880.75 Crore) operating in Financial Services sector.
Star Health and Allied Insurance Company Ltd. key Products/Revenue Segments include Income From Insurance Products, Interest & Dividend and Income From Sale Of Share & Securities for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company has reported a Standalone Total Income of Rs -729.69 Crore, up 226.64 % from last quarter Total Income of Rs -223.39 Crore and up 138.98 % from last year same quarter Total Income of Rs -305.34 Crore. Company has reported net profit after tax of Rs -578.37 Crore in latest quarter.
Investment Rationale
Star Health reported a weak set of numbers in Q3FY22, with a claim ratio of ~105%, a combined ratio of 135% and a net loss of Rs5.7bn. The numbers of Q3 reflect another imperfect quarter in a row due to a double whammy of Covid-19-led hospitalization along with an increased severity and a normalized frequency of non-Covid claims. With Omicron wave turning out to be relatively benign and the company's action on product pricing and operating expenses, the brokerage expects the normalcy in the company's numbers to come back in FY23. Notwithstanding recent turbulence, Star Health has built a strong moat in the highly attractive retail health market and is well poised to grow profitably over the medium to long term. It reiterates Buy rating on the stock with a revised TP of Rs1,040.
Promoter/FII Holdings
Promoters held 58.9 per cent stake in the company as of 31-Dec-2021, while FIIs owned 35.03 per cent, DIIs 2.32 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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