Buy Star Health and Allied Insurance Company, target price Rs 810: Motilal Oswal

Motilal Oswal has buy call on Star Health and Allied Insurance Company with a target price of Rs 810. The current market price of Star Health and Allied Insurance Company is Rs 600.05. Time period given by analyst is 1 year when Star Health and Allied Insurance Company price can reach defined target.

Star Health and Allied Insurance Company, incorporated in the year 2005, is a Large Cap company (having a market cap of Rs 34580.41 Crore) operating in Financial Services sector.

Star Health and Allied Insurance Company key Products/Revenue Segments include Premiums Earned, Interest & Dividend and Income From Sale Of Share & Securities for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 3002.62 Crore, up 3.79 % from last quarter Total Income of Rs 2892.91 Crore and up 10.83 % from last year same quarter Total Income of Rs 2709.24 Crore. Company has reported net profit after tax of Rs 93.10 Crore in latest quarter.

The company’s top management includes Mr.Venkatasamy Jagannathan, Mr.Utpal Hemendra Sheth, Mr.Deepak Ramineedi, Mr.Berjis Minoo Desai, Mr.Rajeev Krishnamuralilal Agarwal, Mr.Rajni Sekhri Sibal, PadmashriKaarthikeyan Devarayapuram Ramasamy, Ms.Anisha Motwani, Mr.Rohit Bhasin, Mr.Anand Shankar Roy, Dr.Subbarayan Prakash, Mr.Sumir Chadha. Company has Brahmayya & Co. as its auditors. As on 30-06-2022, the company has a total of 58 Crore shares outstanding.

Investment Rationale
The brokerage in its report mentioned that Star Health has been focusing on retail health and specialized products, and has been increasing the sum assured per customer. Further, it has improved its tech capabilities to enhance fraud detection. Motilal Oswal expects these initiatives to eventually translate into improvement in claims and combined ratios. The brokerage has reiterated its buy recommendation with a one-year price target of Rs 810 (40x Sep’24E EPS).

Promoter/FII Holdings
Promoters held 58.84 per cent stake in the company as of 30-Jun-2022, while FIIs owned 34.7 per cent, DIIs 2.11 per cent.