Jhunjhunwala Portfolio: Up to 36 percent profit can be earned on investment in the insurance company Star Health and Allied Insurance Company. Right now it is at a discount compared to the IPO price.
Jhunjhunwala Portfolio: Up to 36 percent profit can be earned by investing in the shares of the insurance company Star Health and Allied Insurance Company. Brokerage firm Emkay Global has given it a ‘Buy’ rating, advising investors to buy it at the current price. Big Bull Rakesh Jhunjhunwala also has a stake in this insurance company, due to which there were high expectations of investors, but it disappointed the IPO investors a lot and it is currently about 8 percent discount i.e. 832 against the issue price of Rs 900. is at the rate of Rs. Its IPO also received a great response from investors and was subscribed just 0.79 times. Now the brokerage firm has said in its note that Star Health can take advantage of its strong presence in the retail health insurance segment and its growth prospects are looking good.
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You can invest at the target price of Rs 1135
Star Health is one of the largest private health insurance companies in the country and has a distribution network of 779 health insurance branches in 25 states and 5 union territories of the country. Investors are worried about its high valuation, but Emkay Global says there is no need to worry about it and Star Health has better growth prospects in the fast-growing industry. The brokerage firm has fixed a target price of Rs 1135 per share for investing in it.
Advice to buy shares given on three factors
The brokerage firm has advised to buy it on the basis of three things.
- Health insurance in India is still in its nascent stage with strong potential to grow rapidly.
- Star Health has a strong presence in the health insurance sector. Its market share is more than three times that of its nearest rival.
- Analysts expect margin gains to increase.
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Rakesh Jhunjhunwala holds 14.98% stake
Veteran investor Rakesh Jhunjhunwala is the promoter of Star Health and holds 14.98 per cent stake in this private insurance company. According to the Red Herring Prospectus (RHP) of Star Health, he holds 8.28 crore equity shares. Jhunjhunwala bought these shares between March 2019 and November 2021 at an average price of Rs 155.28. This price is about 83 percent discount to the upper price of the price band fixed for the company’s IPO.
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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