CMP: ₹564.70
Revenue jumped 40 per cent y-o-y in This autumn-FY24 to ₹140 crore, according to our estimate.
The incurred claims ratio got here in at 64.1 per cent (360bp y-o-y) vs. our estimate of 62.7 per cent in This autumn. The expense ratio (together with fee) stood at 28.6 per cent vs. our estimate of 30 per cent. Therefore, the mixed ratio got here in at 92.8 per cent (in line).
For FY24, NEP/PAT grew 15/37 per cent y-o-y to ₹12,900 crore/₹850 crore and the mixed ratio was at 96.7 per cent (vs. 95.3 per centin FY23).
Star Well being is anticipated to extend costs by 15-20 per cent in Q1-FY25 for senior citizen medical insurance product and Younger Star insurance coverage product.
Star Well being has tightened its underwriting requirements to concentrate on high-quality enterprise. We stay optimistic in regards to the general prospects for Star Well being, backed by: robust progress in retail well being, given its under-penetration, robust push from the banca channel, sustained progress in specialised merchandise and deepening presence.
Given the long-term progress potential for the business, together with investments by Star Well being in worthwhile channels and merchandise, we reiterate our Purchase score on the inventory with a TP of ₹730 (based mostly on 30x FY26E EPS).
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