The shares of Star Health and Allied Insurance Company Limited have been on the rise in the past month. They climbed from ₹ 497.95 to ₹ 732.90 apiece levels, up 47.18%.
Ace Investor Rakesh Jhunjhunwala has significant holdings in the company apart from his holdings in Titan Company Ltd. Currently, the big bull holds 100,753,935 shares worth ₹ 7,284.5 crores in the company. This translates to a 17.5% stake.
The shares are currently trading at ₹680.30 apiece. ICICI Securities has a buy rating on the shares. It has revised the target from ₹ 700.00 to ₹ 858.00 apiece. This implies an upside of 26.12%. The said target can be achieved within a period of one year as per the analysts.
The brokerage believes that the health insurance provider underlines strong business execution around product and distribution. This will give confidence in the guidance of outperforming the industry in retail premium growth and maintaining an overall loss/combined ratio of 63-65%/93-95%, respectively.
“Distribution efforts span across channels including rural focus while product strategy uses new designs, repricing as well as hospital negotiations. The combination of 32% retail health premium market share in Q1FY23 and overall strong retail health insurance growth outlook make us constructive on Star,” ICICI Securities said in its research report.
Written by Simran Bafna
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