Shares of Star Health and Allied Insurance Co Ltd fell over 7% on Friday, May 26, after a huge block deal where 7.37 million shares or 1.3% stake of the company changed hands in a bunch of trades, according to reports
Star Health shares price hit an intraday low of Rs 538.05 on NSE and declined as much as 7.6% intraday. At 11.15 am, the scrip was trading at Rs 548 on NSE, down 6.06% from its previous close
Star Health shares have tanked more than 17% in the last one year. So far in 2023, this Jhujhunwala portfolio stock had fallen 6%. Jhunjhunwala family owns 17.32% stake in the company
Recently, Star Health posted a standalone net profit of Rs 102 crore for the quarter ended March 2023 against a net loss of Rs 82 crore for the year-ago period. Gross Written Premium (GWP) increased by 14% to Rs 4,199 crore in the March quarter
Select brokerages are bullish on the Jhunjhunwala stock with a target price of up to Rs 795 per share. Share market analysts believe that gradual improvement in loss ratio and combined ratio will augur well for Star Health and Allied Insurance Company
"With the company achieving the 95.3% CoR, Emkay Global believes that Star Health is on the right track to achieve profitable growth, given its expanding hospital network, strong distribution network, and some normalization in medical inflation. The brokerage has a target of Rs 685 on the stock
Motilal Oswal Financial Services has a 'buy' rating on Star Health stock with a target price of Rs 720. It expects the insurance firm to deliver 19% gross premium CAGR over FY23-25, led by strong growth in Retail Health Insurance
B&K Securities also has a 'buy' rating on Star Health stock with a target price of Rs 686. According to the brokerage firm, Star Health seems to be well positioned to grow in FY24 on dual engines of Retail and Group, with aspiration of growing faster than industry
Geojit Financial Services has an 'accumulate' call on Star Health shares with a target price of Rs 676 per share. "Higher investment income, new product launches, a healthy solvency ratio, and increased focus in technology, are expected to be the major growth drivers," it said
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position