The largest health insurance company  Star Health & Allied Insurance Ltd, shares tanked 8.36 percent on Friday’s trades and closed at a price of ₹ 534.95  apiece against the previous close of Rs 582 on the BSE with a market cap of Rs 31,121 Cr.

One of the probable causes for the stock’s low price is that nearly 20 million shares, or 3.5 percent stake in the company, have changed hands on the exchange. The names of the purchasers and sellers were not determined, Bloomberg reported.

As of March 31, 2023,  Jhunjhunwala and associates hold a 17.32 percent stake in star health.

Star Health and Allied Insurance Company is India’s first independent health insurance company with over 13% market share in India. The firm offers health products, personal accidents, and domestic and international travel insurance. The company has one of India’s largest health insurance networks, with around 10,870 hospitals.

Having a quick walkthrough of the financials reported by the company, the operating revenue increased from ₹3,072crores in Q3 to ₹3,130 crores in Q4. Similarly, the net profits of the company during the same period, declined by 52 percent, from ₹210 crore to ₹ 101 crore. 

The company’s net profit increased by 223% year over year to Rs 101 crore from a loss of Rs 82 crore in FY22.

Anand Rathi and Geojit Financial have given a ‘Buy’ tag to the company with a target price of Rs 723, and Rs 676   respectively, implying a 35 percent and 26.5 percent upside from present levels.

The rationale behind giving such a recommendation pertains to the company’s continuous efforts on the right track to achieve profitable growth, a strong distribution network and the company is well positioned in the new EoM regulations era.

According to the latest data pertaining to the shareholding pattern, promoters of the company hold a 58.29 percent stake, and foreign institutional investors (FIIs) hold a 35.24 percent stake in the company for FY 22-23.

Written by Omkar C


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