Star Health
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Star Health is positioned for robust growth, driven by a strategic focus on the underpenetrated retail health segment, which is expected to expand at 16-18%. Management's emphasis on a scalable and profitable franchise, supported by a proprietary distribution network, enhances its competitive position. The company's recent 19% YoY growth in gross written premiums and disciplined claims management are expected to improve profitability and margins. Vista's financial outlook reflects this momentum, forecasting accelerating revenue growth and improving margins, with a target price of approximately 1,002 over the next 12 months. However, potential earnings volatility from IFRS accounting and regulatory changes pose risks. Overall, the combination of strong operational performance and favorable market dynamics supports a positive investment thesis for Star Health over the next 12-24 months
Why We Like This Stock
- Strong operational momentum with a 19% YoY growth in gross written premiums
- Strategic focus on the underpenetrated retail health segment, expected to grow at 16-18%
- Improved profitability driven by disciplined claims management and a favorable product mix
Things To Watch Out For
- Potential earnings volatility due to IFRS accounting changes
- Regulatory shifts impacting commission structures could pose risks
- Seasonal claims pressure in Q2 may affect short-term performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 14,021 | 16,101 | 17,825 | 20,470 | 23,181 |
| Profit Before Tax (Cr.) | 1,129 | 862 | 754 | 1,738 | 1,802 |
| PBT Margin | 8.1% | 5.4% | 423.0% | 8.5% | 7.8% |
| Net Profit (Cr.) | 1,048 | 637 | 557 | 1,286 | 1,333 |
| Earnings Per Share | 17.8 | 10.8 | 9.5 | 21.8 | 22.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ▲ Buy | 650 | 30-Apr-2026 |
| HDFC Securities | ► Add | 545 | 30-Apr-2026 |
| Jeffries | ► Hold | 700 | 30-Jul-2026 |
| Kotak Securities | ▲ Buy | 610 | 29-Apr-2026 |
| Motilal Oswal | ▲ Buy | 770 | 30-Jul-2026 |
| Nomura | ▲ Buy | 700 | 30-Jul-2026 |
Company Overview
Show Company Profile
Star Health and Allied Insurance Company Limited provides health insurance products in India. It offers retail health insurance products for individuals, families, children, senior citizens, and persons with pre-existing medical conditions; group health insurance products for employer/employee and non-employer/employee groups, including small-to-medium enterprises; and personal accident and travel insurance products. The company also provides star women care insurance policy that provides surrogacy and oocyte donor covers; and star special care product that covers children diagnosed with autism and for outpatient specialized treatments. In addition, it offers star health assure insurance policy, star cancer care platinum insurance policy, senior citizens health insurance policy, and star cardiac care insurance policy platinum, as well as star group OPD care insurance product. The company offers its products through web aggregators, digital channels, agency channels, corporate agents, brokers, point of salesperson, insurance marketing firms, and various other channels. Star Health and Allied Insurance Company was incorporated in 2005 and is based in Chennai, India.