ਜੈਫਰੀਜ਼ ਨੇ ਸਟਾਰ ਹੈਲਥ 'ਤੇ 650 ਰੁਪਏ ਦੇ ਟਾਰਗੇਟ ਨਾਲ 'ਬਾਏ' ਰੇਟਿੰਗ ਦੁਹਰਾਈ, ਆਪਰੇਸ਼ਨਲ ਰਿਕਵਰੀ ਦਾ ਹਵਾਲਾ

ਜੈਫਰੀਜ਼ ਨੇ ਸਟਾਰ ਹੈਲਥ ਐਂਡ ਅਲਾਇਡ ਇੰਸ਼ੋਰੈਂਸ ਕੰਪਨੀ ਲਿਮਟਿਡ 'ਤੇ ਆਪਣੀ 'ਬਾਏ' ਕਾਲ ਦੁਹਰਾਈ ਹੈ, ਅਤੇ 650 ਰੁਪਏ ਦਾ ਕੀਮਤ ਟਾਰਗੇਟ ਨਿਰਧਾਰਤ ਕੀਤਾ ਹੈ, ਜੋ ਮੌਜੂਦਾ ਪੱਧਰਾਂ ਤੋਂ ਕਾਫ਼ੀ ਉੱਪਰ ਜਾਣ ਦੀ ਸੰਭਾਵਨਾ ਦਰਸਾਉਂਦਾ ਹੈ. ਬ੍ਰੋਕਰੇਜ ਫਰਮ ਨੇ ਦੱਸਿਆ ਕਿ ਸਟਾਰ ਹੈਲਥ ਦੇ ਸਤੰਬਰ ਤਿਮਾਹੀ ਦੇ ਨਤੀਜਿਆਂ ਨੇ ਆਪਰੇਸ਼ਨਲ ਪ੍ਰਦਰਸ਼ਨ ਵਿੱਚ ਰਿਕਵਰੀ ਦਾ ਸੰਕੇਤ ਦਿੱਤਾ ਹੈ, ਮੁੱਖ ਤੌਰ 'ਤੇ ਲੋਸ ਰੇਸ਼ੋ ਵਿੱਚ ਕਮੀ ਅਤੇ ਪ੍ਰੀਮੀਅਮ ਮੋਮੈਂਟਮ ਦੇ ਜਾਰੀ ਰਹਿਣ ਕਾਰਨ. 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.