Update shared on 31 Oct 2025
Fair value Increased 3.61%Narrative Update: Star Health and Allied Insurance Price Target Revised Upwards
Analysts have raised their price target for Star Health and Allied Insurance from ₹478.32 to ₹495.59, citing improved revenue growth projections and higher expected profit margins.
What's in the News
- A board meeting is scheduled for October 28, 2025, to consider and approve the standalone un-audited financial results for the quarter and half year ended September 30, 2025, along with other related business matters (Key Developments).
- "Know Your Policy" has been launched as a new in-app feature to simplify the understanding of health insurance coverage, providing concise summaries of policy benefits, exclusions, and waiting periods for customers (Key Developments).
- Digital initiatives continue to grow, with 11 million app downloads, 1.2 million monthly active users, 63% of renewals automated, and over 75% of new business generated through digital channels (Key Developments).
- Customer satisfaction has shown improvement, as indicated by a reduction in support calls and high app ratings: 4.6 on the App Store and 4.4 on Google Play (Key Developments).
Valuation Changes
- Fair Value: The consensus analyst price target has increased from ₹478.32 to ₹495.59, reflecting a moderate upward revision.
- Discount Rate: The discount rate remains unchanged at 12.73%.
- Revenue Growth: Projected annual revenue growth has risen slightly, from 14.91% to 15.99%.
- Net Profit Margin: Expected net profit margin has improved from 5.07% to 5.63%.
- Future P/E: The estimated future price-to-earnings ratio has decreased from 31.69x to 28.70x. This indicates a more attractive valuation.
Disclaimer
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