The stock of Star Health & Allied Insurance has fallen more than 32 percent to a price of Rs 635 as compared to its record high of Rs 940.
Rakesh Jhunjhunwala Portfolio Stock: Many stocks have corrected in the recent fall of the stock market. In this, there is also Star Health & Allied Insurance Company included in the portfolio of Rakesh Jhunjhunwala. This stock has fallen more than 32 percent to a price of Rs 635 in comparison to its record high Rs 940. This recently listed stock is trading well below its issue price. Although experts are confident that if you had not invested in its IPO, then there is a good chance to enter the stock at the current price. The company’s past track record has been good, the company has a good hold in the retail health market, hence Star Health’s business outlook is strong in the long term.
Stock has the potential to deliver strong returns
Brokerage house ICICI Securities has given investment advice in the stock of Star Health with a target of Rs 806. The brokerage house says that Star Health Insurance is one of the leading insurance players in India. The company’s market share in total/retail health insurance is 14 per cent and 32 per cent as of 10MFY22. The company has a strong network of more than 5 lakh agents, more than 12000 hospitals and 737 branches. Due to these reasons, the company occupies a dominant position in the insurance sector in India.
The financial track record of the company is good. The company’s PAT has grown at 18% CAGR during FY16-FY20. The average RoE during FY18-FY20 has been 15.5 per cent. The company has strong management. Although the company’s business in FY21/FY22 has been affected due to COVID 19, but the company will get the benefit of better growth in the health insurance sector going forward. At present, in terms of current price, it can give 28 percent return.
How many shares does Rakesh Jhunjhunwala have?
Rakesh Jhunjhunwala holds 17.5 percent stake in the company. The company has 100,753,935 shares in his portfolio. Star Health was listed on the stock exchange on 10 December 2022. The issue price for the IPO was Rs 900, while the stock got listed at Rs 903. On the listing day, after seeing a price of Rs 940, it closed at Rs 907. At the same time, the share is around Rs 635.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
,