Star Health and Allied Insurance Company Ltd. share price target

Retail health is a high growth business with high entry barriers. This is proved by the fact that (1) retail health premiums have grown by 20% CAGR over the last 5 years and (2) no player has been able to grow its market share meaningfully apart from Star Health and Care Health over the last 5 years.

Large population base along with massive under penetration provides a long term sustainable growth opportunity. Increased awareness, led by Covid, is likely to act as inflection point. Rising income, product development, medical inflation is expected to pave the way for next leg of growth. We expect insurance penetration to double (from 3.8% in FY21) to 17%, 18% CAGR in...

Star Health Insurance (STAR) is the leading health insurance player in India with 14%/32% market share in total/retail health insurance segment as of 10MFY22. A strong network of 0.53mn agents, >12,000 hospitals and 737 branches as of 9MFY22 makes STAR a dominant franchise in Indian health insurance with significant entry barriers. This is further complemented by healthy financials.

Star Health & Allied Insurance is and continue to be the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in Fiscal 2021. In Fiscal 2021 and the six months ended September 30, 2021, company had total GWP of 93,489.50 million and 50,697.82 million, respectively. From being the first standalone health insurance ("SAHI") company established in India in 2006, company have...