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ICICI Securities has buy call on Star Health and Allied Insurance Company with a target price of Rs 806. The current market price of Star Health and Allied Insurance Company Ltd. is Rs 631. 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 36574.43 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 reported a Standalone Total Income of Rs 2711.01 Crore, up .07 % from last quarter Total Income of Rs 2709.24 Crore and up 77.07 % from last year same quarter Total Income of Rs 1531.07 Crore. Company reported net profit after tax of Rs -578.37 Crore in latest quarter.
Investment Rationale
Star Health Insurance (STAR) is the leading health insurance player in India with 14%/32% market share in total/retail health insurance segment as of 10MFY22. A strong network of 0.53mn agents, >12,000 hospitals and 737 branches as of 9MFY22 makes STAR a dominant franchise in Indian health insurance with significant entry barriers. This is further complemented by healthy financials (18% PAT CAGR over FY16-FY20 and average RoE of 15.5% over FY18-FY20) and strong management. While FY21/FY22 have been impacted by covid, the brokerage sees good prospects for >20% premium CAGR in Indian health insurance space till FY30 on the back of: 1) structural under-penetration, 2) increasing consumer awareness and 3) rising affordability. It sees STAR well placed to be one of the biggest beneficiaries of the same.
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 36574.43 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 reported a Standalone Total Income of Rs 2711.01 Crore, up .07 % from last quarter Total Income of Rs 2709.24 Crore and up 77.07 % from last year same quarter Total Income of Rs 1531.07 Crore. Company reported net profit after tax of Rs -578.37 Crore in latest quarter.
Investment Rationale
Star Health Insurance (STAR) is the leading health insurance player in India with 14%/32% market share in total/retail health insurance segment as of 10MFY22. A strong network of 0.53mn agents, >12,000 hospitals and 737 branches as of 9MFY22 makes STAR a dominant franchise in Indian health insurance with significant entry barriers. This is further complemented by healthy financials (18% PAT CAGR over FY16-FY20 and average RoE of 15.5% over FY18-FY20) and strong management. While FY21/FY22 have been impacted by covid, the brokerage sees good prospects for >20% premium CAGR in Indian health insurance space till FY30 on the back of: 1) structural under-penetration, 2) increasing consumer awareness and 3) rising affordability. It sees STAR well placed to be one of the biggest beneficiaries of the same.
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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