जेफरीजने स्टार हेल्थवर 650 रुपयांच्या लक्ष्यासोबत 'बाय' रेटिंग पुन्हा जारी केली, ऑपरेशनल रिकव्हरीचा दाखला

जेफरीजने स्टार हेल्थ अँड अलाईड इन्शुरन्स कंपनी लिमिटेडसाठी 'बाय' कॉल पुन्हा एकदा जारी केला आहे, ज्याचे प्राइस टार्गेट 650 रुपये ठेवण्यात आले आहे. हे सध्याच्या पातळीवरून लक्षणीय वाढीची शक्यता दर्शवते. ब्रोकरेज फर्मने निदर्शनास आणले की स्टार हेल्थच्या सप्टेंबर तिमाहीच्या निकालांनी ऑपरेशनल परफॉर्मन्समध्ये रिकव्हरीचे संकेत दिले आहेत, मुख्यत्वे लॉस रेशोमध्ये घट आणि प्रीमियम मोमेंटम टिकून राहिल्यामुळे. A key positive noted was the 130 basis-point year-on-year improvement in the loss ratio, bringing it down to 71.5%. The company's combined ratio, which measures underwriting profitability (loss ratio plus expense ratio), also improved to 101.8% on a like-for-like basis, moving closer to underwriting breakeven. However, the reported profit after tax (PAT) for the quarter stood at Rs 54.9 crore, a decrease from Rs 109.4 crore in the prior year. This was attributed to upfront costs amounting to approximately Rs 150 crore associated with a 30% sequential growth in long-term policies, which are recognized immediately under accounting norms. Despite the lower reported profit, core insurance metrics showed strength. Gross Written Premium (GWP) increased to Rs 4,371 crore from Rs 4,238 crore in the previous quarter, and Net Earned Premium (NEP) climbed to Rs 3,704 crore, indicating continued traction in Star Health's dominant retail segment. Investment income was slightly below expectations, but the core insurance metrics like loss ratio, commission, and operating costs showed the improvements the market was looking for. Jefferies expects premium growth to continue, driven by retail health penetration and product mix shifts. They anticipate a gradual recovery in combined ratios as the front-loaded costs normalize and loss ratios remain stable. Impact: This news indicates a positive outlook for Star Health & Allied Insurance, with a strong Buy recommendation and a considerable price target from Jefferies. Investors may see this as a signal for potential stock appreciation, assuming the company executes its growth strategy and manages claims effectively. The focus on operational recovery and sustained premium growth suggests a path towards improved profitability and potential valuation re-rating.