Geojit upgrades insurance stock to ‘buy’, sees 17% returns over 12 months; do you own?
Star Health and Allied Insurance Company Ltd Share Price: Shares of Star Health and Allied Insurance have been on uptrend in the last few sessions after reporting decent July-September quarter results for fiscal 2023-24 (Q2FY24). Domestic brokerage firm Geojit Financial Services has upgraded its rating on the large cap to a ‘buy’ call and sees 17 per cent returns over the next 12 months. At a current market price (CMP) of ₹560, Geojit has given a target price of ₹653 and sees potential returns from Star Health increasing to over 17 per cent in one year.
On Friday, November 24, shares of Star Health opened at ₹550.05 and gained more than 5 per cent to hit an intra day high of ₹577.85, against a 52-week high of ₹674.95 on the BSE. Shares settled 2.51 per cent higher at ₹571.35 apiece on the BSE. Strong growth momentum in retail health premium, new product launches, sustained focus on digitalisation, wide distribution network, new bancassurance partnerships and a healthy solvency ratio auger well for Star Health’s future performance, according to the brokerage.
It recently launched a dynamic UPI QR code-based payment option to simplify the process of purchasing and renewing health insurance. ‘’The company is a market leader with a 33 per cent market share in the retail health space and is well positioned to tap into the large addressable, and yet, underpenetrated healthcare segment. We hereby upgrade our rating on the stock to BUY with a target price of Rs.
653, based on 4.85x FY25E BVPS,'' said Geojit Financial Services. Star Health and Allied Insurance company commenced its operations in 2006 and is India’s first standalone health insurance provider. The company offers health, personal accident and both domestic and
. Read more on livemint.com
