Star Health Share Price Falls After Company Confirms Data Breach

Star Health and Allied Insurance Co.'s share price fell Thursday following a statement by the company, which confirmed that a "targeted malicious cyberattack" resulted in unauthorised and illegal access to certain data of the company.

In September, a UK-based cyber security researcher had claimed that personal data like mobile numbers, addresses and pre-existing medical conditions of more than 3.1 crore customers of the company have been allegedly sold by a senior company official.

The company has said it has not found any evidence of wrongdoing from their Chief Information Security Officer as of yet, following its investigation into the data breach.

"We request that his (senior official's) privacy be respected, as we know that the threat actor is trying to create panic," the company told NDTV Profit on Wednesday.

Meanwhile, JM Financial initiated coverage on the stock as well as ICICI Lombard, noting that they are market leaders in the largest segments of motor and health, respectively, with a positive stance. "Our favourable view stems from consistent growth in the sector, with strong return profile, as pricing discipline is enforced by the regulator, keen on expanding insurance to all by 2047," it said.

"On Star, we believe concerns on slower (consistently 15%+) growth, higher claims in a season or probable entry of life insurers do not justify the valuation discount to peers," JM Financial said. It has assigned a 'buy' with a target price of Rs 750 per share, implying 29.8% upside.

Share price of Star Health fell as much as 2.6% before paring loss to trade 1.8% lower at Rs 567.50 apiece, as of 10:12 a.m. This compares to a 0.54% advance in the NSE Nifty 50.

The stock has risen 6.18% year-to-date, but fallen 2.1% in last 12 months. Total traded volume so far in the day stood at 0.65 times its 30-day average. The relative strength index was at 33.27.

Out of 32 analysts tracking the company, 15 maintain a 'buy' rating, 12 recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 16.9%.