The shares of Star Health and Allied Insurance Company have declined 26.32% in the last 7 sessions and made their new record low of ₹516.10 on Monday. Currently, the stock is trading at the ₹517.25 and is down 2.88% as of IST 11:42.
The share was listed in the market on 10th December 2021 at ₹845. During the listing day, the share touched the high of ₹940 and closed at a price of ₹906.85. Since then, the share has witnessed a downward trend and is currently trading at a discount of 44.93% from its peak.
Ace investor Rakesh Jhunjhunwala holds a 17.5% stake in the company since its listing and has remained unchanged as of March 2022. The 17.5% stake of Jhunjhunwala amounts to 10,07,53,935 shares which are currently worth ₹5,410.4 crores.
As of March 2022, Promoters hold a 58.90% stake in the company, FIIs hold a 9.78% stake, DIIs hold a 27.30% stake and the Public holds a 4.02% stake in the company.
For FY22 the company reported net revenue of ₹10,601 crores which is an increase of 104% compared to the previous financial year. Although the company doubled its revenue it reported a net loss of ₹1,040 crores which is an increase of net loss by 26% compared to the previous financial year.
The Management believes that the company’s performance will return to normal in FY23, with the absence of any further Covid-19 wave.
Star Health & Allied Insurance Ltd (Star) is the largest private health insurer in India and India’s first Standalone Health Insurance provider with a market share of 15.8% in the Indian health insurance market in FY21.
Although the company has reported a huge net loss for two years, Rakesh Jhunjhunwala has bet a huge stake in the company during its listing and hasn’t decreased his holdings as of March 2022. Does Jhunjhunwala see a potential in the company that the general investors do not see?
Written By: Aaron Vas
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