Stock Check: Down over 40% from the IPO price, should you buy Star Health now? Here's what experts say
₹900. As of the close on May 22, the stock remains significantly below this benchmark, trading at ₹539.30 — over 40 percent lower than its initial offering price.Star Health was listed at ₹845.00 on December 10, 2021, marking a 6.11 percent discount from its offer price. On the same day, the stock briefly reached a high of ₹940, the only time it surpassed its IPO price.The stock has continued its weak performance, down over 9 percent in the last one year and completely flat in 2024 YTD.
It has fallen almost 3 percent in May so far after a 4.7 percent gain in April. However, it lost around 3 percent in March and February each. It rose over 8 percent in January of this year.Currently, the stock is over 20 percent away from its 52-week high of ₹674.95, hit on September 11, 2023; and 42.6 percent away from its record high of ₹940, hit on listing day, December 10, 2021.
Still, it is 13 percent above its 52-week low of ₹477, hit on March 1, 2024.In the quarter ending March 2024 (Q4FY24), Star Health reported a net profit increase of 40%, reaching ₹142.3 crore compared to ₹101.8 crore in the same quarter the previous year.The company's net premium earned rose by 16.6% to ₹3,395.3 crore, up from ₹2,912.5 crore in Q4FY23.However, its underwriting loss widened to ₹91 crore from ₹65.4 crore in the same period last year. The combined ratio (COR) improved to 92.77% from 97.83% year-on-year (YoY), indicating better operational performance.Despite these mixed results, the management remains optimistic, expecting the retail health insurance industry to grow in the mid-teens and aims to exceed this growth rate. Star Health is currently trading at Rs.540.
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