Emkay Global Financial's research report on Star Health
Star Health reported a good set of numbers in Q1FY23, with combined ratio (CoR) of 98.2%, profit after tax of Rs2.13bn, and a much-improved solvency ratio of 187%. Beyond the finer details, the bigger message from the result is that the company is well on track to execute its profitable growth strategy, focusing on the retail and SME segments. Notwithstanding slightly higher combined ratio in Q1FY23, management commentary is upbeat about achieving 63-65% claims ratio and 93-95% combined ratio in FY23. Q1 trend and management guidance increases our confidence about the company achieving ~96% CoR in FY23. With Covid-19-led abnormalities in the business behind, by leveraging its moat, Star Health will embark on a longterm profitable growth journey.
Outlook
We reiterate Buy on the stock with an unchanged TP of Rs945.
For all recommendations report, click here
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