Star Health’s Shares Surge Following Strong Q2 Results and Geojit’s Buy Rating

Star Health's Shares Surge Following Strong Q2 Results and Geojit's Buy Rating

VoM News Desk | November 24, 2023 | 10:19 PM IST | Breaking News | Follow on Google News

Star Health’s Shares Surge Following Strong Q2 Results and Geojit’s Buy Rating

Star Health’s Shares Surge Following Strong Q2 Results and Geojit’s Buy Rating

Star Health and Allied Insurance Company Ltd has been experiencing a notable uptrend in its share prices, particularly after posting encouraging results for the July-September quarter of fiscal 2023-24 (Q2FY24). This positive momentum is further bolstered by Geojit Financial Services’ upgraded rating of the large-cap stock.

Impressive Quarterly Performance and Brokerage Outlook

The company reported a significant 34% increase in net profit for Q2FY24, amounting to ₹125 crore. This rise is compared to the ₹93 crore net profit in the same period last year. The total income also saw a considerable rise to ₹3,357 crore against ₹2,918 crore year-on-year. Additionally, Geojit Financial Services has issued a ‘buy’ call on the stock, foreseeing a 17% return over the next 12 months.

Growth Driven by Retail Health Insurance

Star Health’s robust performance is primarily driven by its retail health insurance segment. The Gross Written Premium (GWP) in the September quarter rose by 16.9% year-on-year to ₹3,732 crore. The Net Earned Premium (NEP) of health insurance, including personal accident, grew by 14.7% year-on-year to ₹3,206 crore, with the retail health segment contributing significantly to this growth.

Strategic Moves and Market Leadership

The company’s strategic focus on digitalization, wide distribution networks, new bancassurance partnerships, and product launches have been pivotal in its market dominance. Star Health holds a 33% market share in the retail health space, over three times that of the second-largest player in the industry. Geojit’s upgrade to a ‘buy’ rating with a target price of ₹653 is reflective of Star Health’s strong market position and potential for future growth.

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