Buy Star Health and Allied Insurance Company; target of Rs 723: Anand Rathi

Anand Rathi's research report on Star Health and Allied Insurance Company

STARHEALTH hosted an analyst meet on 29th March to share the process of claim settlement and outlook on its retail health insurance segment. Below are the key takeaways The Indian health insurance market remains in the early stages of its life cycle and continues to be one of the most underpenetrated health insurance markets globally. A number of demographic factors are expected to continue to drive growth in the health insurance industry in India, with the retail health insurance segment in India being particularly attractive due to its lower penetration, density and claims ratio compared to other health insurance segments.

Outlook

STARHEAL's management team has demonstrated promising potential for future growth, particularly in the area of Retail Health, which is expected to drive overall gross premiums to a healthy CAGR over the next couple of years. Additionally, the claims ratios are expected to normalize, which should help the company return to profitability over the same time period. Based on these factors, the evaluators are optimistic about the prospects of STARHEAL's business model and have maintained a "BUY" rating on the stock, with a target price of Rs 723.