Newly listed Jhunjhunwala stock may rise over 20% as Motilal Oswal sees upside

Other than this, star healthHigher earnings growth and higher contributions from investment income versus underwriting gains strengthen the case, the domestic brokerage and research firm said in a note.

Based on these factors, Motilal Oswal has arrived at the appropriate price 750 (target price) and buy rating on Star Health and Allied Insurance shares, indicating a potential growth of over 20% from current levels. Rakesh Jhunjhunwala-backed company Star Health made its stock market debut in December 2021.

Motilal Oswal believes that Star Health, the market leader in the Indian health insurance industry with a retail market share of 31%, is poised to grow at a relatively faster pace than the overall health insurance industry.

However, “While the Covid-19 pandemic brought a drag in the demand for health insurance, it also brought with it a high claim ratio. Further covid waves could be detrimental to earnings, considering the severity of covid-19 claims 2x non-covid-19 claims, the brokerage note said. In addition, increased competition from multi-line general insurers could pose a risk to Star Health. Development.

Star Health, the leading private health insurance company in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala. Established in 2005, Star Health offers coverage options for retail health, group health, personal accidents and overseas travel insurance.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.