Buy Star Health; target of Rs 730: Motilal Oswal

Motilal Oswal is bullish on Star Health recommended buy rating on the stock with a target price of Rs 730 in its research report dated October 31, 2023.

Broker Research

November 05, 2023 / 17:21 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Star Health

Star Health (STARHEAL) reported a PAT of INR1.3b in 2QFY24 vs. INR934m in 2QFY23. PAT was 32% below our estimate due to higher-than-expected claims and expense ratios. STARHEAL had taken a price revision in Family Health Optima (w.e.f. 1st May’23 on the renewal book), which will be reflected over the next 12 months. The policy renewals (both in volumes and in value) were in line with the company’s expectations. As compared to the earlier guidance of 63-65% loss ratio, management now expects to exceed the same given the rising incidences of fever and respiratory diseases. We have cut our EPS estimates by 13%/4% for FY24/25 to factor in higher claims and expense ratios in 1HFY24.

Outlook

Considering the long-term growth potential for the industry along with investments by STARHEAL in profitable channels and products, we reiterate our BUY rating with a TP of INR730 (based on 33x FY25E EPS).

For all recommendations report, click here