The financial service company has revealed that Star Health and Allied Insurance will be making huge profits in the future.
Read More: Wipro Slides 3% After CFO Dalal Resigns In Latest High-Profile Exit
Motilal Oswal is a popular financial service company that offers a range of financial products and services related to equity trading, commodity trading, investment advisory services, SIPs, IPOs, and mutual fund investments. The company has been making several predictions in the stock market regarding the prices and bullish periods of many stocks. Recently, the financial service company has revealed that Star Health and Allied Insurance will be making huge profits in the future and has urged investors to buy its shares.
Currently, the stock of the insurance company is trading at a price much below its record high. As of September 21, shares of Star Health closed at Rs 604 on the National Stock Exchange (NSE). Late business magnate Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala also has shares of Star Health in her portfolio.
Motilal Oswal estimates that this stock may touch the level of Rs 760 in the coming time.
Read More: Stock Market Updates: Sensex Trades Flat, Nifty Nears 19,750; IOB Gains 4%
This means that it may rise by 25 per cent from the current level. They have also revealed that Star Health and Allied Insurance is expecting to report a 19 per cent CAGR (compound annual growth rate) in overall gross premiums between FY23 and 25. It is also expected that during this period, the CAGR in overall retail health will be around 20 per cent, and there will be a 10 per cent CAGR in group businesses.
These factors are expected to play a major role in the expected return on the stock of the insurance company. After the Covid-19 pandemic, awareness regarding health insurance has also increased. The company’s focus is now increasing in rural India, as there has been a surge in the demand for health insurance there as well.
Read More: Sebi issues guidelines for handling complaints received via SCORES platform
Star Health became an IPO on December 10, 2021. The stock of the company has remained almost stable in 2023, and till now it has given a 3 percent return to its investors. There has been a rise of 9 per cent in this stock in the last six months. At present, this share is at a 41 per cent discount from its record high of Rs 940.
