Star Health - Robust Growth Outlook, Attractive Valuations: Motilal Oswal

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Motilal Oswal Report

Star Health and Allied Insurance Company Ltd. has tightened its underwriting standards to focus on high-quality business. We remain optimistic about the overall prospects for Star Health, backed by:

strong growth in retail health, given under-penetration,
strong push from the banca channel,
sustained growth in specialised products, and
deepening presence.

Star Health is expected to increase prices by 15-20% in Q1 FY25 for its senior citizen health insurance product and Young Star insurance product. These products account for ~10% of the total premium.

We believe that Star Health can deliver long-term growth with the investments made in profitable channels and products. We reiterate our Buy rating on the stock with a target price of Rs 730 (based on 30 times FY26E EPS).

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Motilal Oswal Star Health Update.pdf

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Also Read: GSK Pharma - Business In Recovery Model: Motilal Oswal

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