Emkay Global Financial's report on Star Health
We hosted management of Star Health and Allied Insurance Company in London on June 23-24 for meetings with a large number of FPIs to discuss the company’s business performance and growth trajectory and address investor concerns. The key highlights: 1) investors remain positive on the retail health insurance business in India; 2) the possible entry of life insurers into health indemnity would only mean a little extra competition and nothing more; 3) the company should continue to focus on granular distribution rather than relying on any large distributor. Investors positive on retail health insurance in India: Most of the investors were confident about the strong growth potential of the retail health insurance business in India and acknowledged Star Health's MOAT in this business segment. Notwithstanding short-term volatility in growth, investors were broadly of the view that constantly increasing affluence and rising medical inflation, along with a demand for good healthcare, will keep driving retail health insurance in India over the medium to long term.
Overall, Star Health remains an attractive story in a sunrise sector. In our view, 1-2 quarters of profitable growth delivery will likely lead to a material outperformance of Star Health’s shares. The recent steep fall in the share prices provides an attractive entry point. We have a Buy rating on the stock with a TP of Rs945.
At 14:50 hrs Star Health & Allied Insurance Company was quoting at Rs 514.30, down Rs 0.50, or 0.10 percent.
It has touched an intraday high of Rs 528.95 and an intraday low of Rs 507.65.
It was trading with volumes of 20,588 shares, compared to its thirty day average of shares, a decrease of percent.
In the previous trading session, the share closed down 3.49 percent or Rs 18.60 at Rs 514.80.
The share touched its 52-week high Rs 940.00 and 52-week low Rs 512.35 on 10 December, 2021 and 27 June, 2022, respectively.
Currently, it is trading 45.29 percent below its 52-week high and 0.38 percent above its 52-week low.Market capitalisation stands at Rs 29,628.83 crore.
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