10 months ago
Star Health Shares Rise 4% After Strong Q2 Results and Analyst Upgrade
Imagine a company that sells health insurance called Star Health.
Its stock price went up by almost 4% recently.
This happened after they shared their financial results for the period ending in September, which looked good.
A financial advisor company also said that buying this stock might be a good idea now and set a higher price goal for it.
Star Health has been changing how it works, like raising prices a bit for its regular customers and focusing less on big company deals to make more profit.
They've also stopped selling a certain type of insurance for employee groups and now only focus on individuals and small businesses.
This strategy seems to be working, as their rate of paying out claims went down.
Many people who buy insurance for the first time are choosing Star Health, and their sales are growing, especially online.
Because of these good signs, the financial advisor believes the stock price could go up even more.
Star Health shares rose nearly 4% on Friday following its September quarter results.
JM Financial upgraded Star Health stock to 'Add' from 'Hold' and raised its target price to Rs 525.
The company reported a 130 basis point year-on-year improvement in its claims ratio to 71.5% for the September quarter.
Star Health has exited the group employer-employee segment, with its retail business now comprising 95% of its portfolio.
JM Financial notes the stock is trading below its historical average P/E, offering value amid improving profitability.
- Who
- Star Health and Allied Insurance, with a focus on investor Rekha Jhunjhunwala and analyst JM Financial
- What
- Shares rose nearly 4% after the company reported its September quarter results and received an analyst upgrade
- Where
- BSE (Bombay Stock Exchange)
- When
- Friday's trade, following September quarter results reported on Wednesday
- Why
- Positive September quarter results, including an improved claims ratio, targeted price hikes, focus on profitable segments, and an analyst upgrade to 'Add' with a raised target price.
Key facts
- Company
- Star Health and Allied Insurance
- Investor Stakeholder
- Rekha Jhunjhunwala
- Stock Movement
- Rose nearly 4% on Friday trade
- Analyst Upgrade
- JM Financial upgraded to 'Add' from 'Hold'
- New Target Price
- Rs 525
- September Quarter Claims Ratio
- 71.5%
- Retail Business Share
- 95% of total portfolio
Quotes
JM Financial
a brokerage firm
“After poor claims performance in 1HFY25, the company had taken targeted price hikes in its retail portfolio and cut its loss-making corporate business, instead focusing on SMEs.”
businesstoday.in
“We believe these aspects would be rewarded by markets”
businesstoday.in





