Introduction
Star Health and Allied Insurance Company Ltd. is a leading health insurance provider in India. In this article, we will delve into the performance and Star Health Share Price, analyzing various factors that influence its valuation in the market. We will explore the company’s financial performance, industry comparisons, analyst estimates, and other key metrics to gain insights into its growth potential and investment prospects.
Financial Performance and Valuation
Star Health has shown commendable financial performance in recent years, with consistent growth in its earnings per share (EPS). In the trailing twelve months (TTM), the company’s EPS has increased by an impressive 302.84% year-on-year. This substantial growth indicates the company’s ability to generate profits and deliver value to its shareholders.
When it comes to valuation, Star Health’s price-to-earnings (P/E) ratio is currently at 43.65, which signifies a relatively higher valuation compared to the average industry P/E ratio of 17.52. However, it’s important to note that the company’s strong financial performance justifies its higher valuation. Additionally, the price-to-book (P/B) ratio of 4.72 indicates that the stock is trading at a premium in relation to its book value.
Industry Comparison
To gain a better understanding of Star Health’s position in the market, it’s essential to compare the company’s performance with its industry peers. While there is no suggested peer for Star Health, we can analyze the company’s financial ratios and key performance indicators to assess its relative strength within the industry.
Star Health’s return on equity (ROE) stands at 10.81%, which indicates the company’s efficiency in utilizing shareholder funds to generate profits. The company’s debt-to-equity ratio is 0.07, suggesting a conservative capital structure with minimal reliance on debt financing. These factors contribute to the company’s stability and financial strength.
Analyst Estimates and Recommendations
Analysts play a crucial role in assessing the future prospects of a company and providing recommendations to investors. According to an aggregated analysis from 19 analysts, Star Health has received positive recommendations, with a majority of analysts recommending a “Buy” rating. These recommendations are based on the company’s strong financial performance, growth potential, and industry outlook.
It’s important to note that analysts’ estimates and recommendations are subjective opinions, and investors should conduct their own research and analysis before making investment decisions. However, the consensus among analysts indicates a favorable outlook for Star Health in the market.
Stock Performance and Price Trends Star Health Share Price
Star Health Share Price has shown both positive and negative movements over different time frames. In the past week, the share price increased by 1.24%, indicating a short-term positive trend. However, over the past month, the Star Health Share Price declined by 6.0% percent, reflecting a period of consolidation or correction.
It’s worth noting that stock prices are influenced by various factors, including market sentiment, economic conditions, and industry dynamics. Investors should consider the long-term fundamentals of the company rather than focusing solely on short-term price movements.
Contingent Liability Coverage
Star Health has demonstrated its ability to manage contingent liabilities effectively. The company’s financial reports indicate that it has sufficient cash reserves to cover any potential liabilities that may arise. This provides investors with confidence in the company’s financial stability and risk management capabilities.
Employee & Interest Expense
Star Health’s financial reports reveal that the company has allocated less than 1% of its operating revenues towards interest expenses. This indicates a favorable interest coverage ratio, suggesting that the company is able to comfortably meet its interest obligations. Additionally, the company’s employee cost accounts for 13.35% of its operating revenues, which is within a reasonable range for a company in the insurance sector.
Peer Comparison and Market Capitalization
While there is no suggested peer for Star Health, we can analyze the company’s market capitalization to understand its relative size and market position. With a market capitalization of ₹31,652 Crores, Star Health is considered a large-cap company. Its significant market capitalization indicates the company’s prominence and market presence within the health insurance industry.
Shareholding Pattern
Analyzing the shareholding pattern of a company provides insights into the ownership structure and potential influence of different stakeholders. As of September 2023, the promoter holding at Star Health stood at 58.02%. Foreign institutional investors (FIIs) held 30.63% of the shares, while domestic institutional investors (DIIs) held 6.11%. Mutual funds accounted for 3.75% of the shareholdings, and other investors held 5.24%.
The shareholding pattern reflects a balanced ownership structure, with a significant stake held by promoters and a substantial presence of institutional investors. This indicates market confidence in the company’s growth prospects and long-term sustainability.
Corporate Action and Board Meetings
Corporate actions and board meetings provide valuable insights into a company’s strategic decisions and future plans. Star Health has been proactive in conducting board meetings to discuss quarterly results and other important matters. These meetings serve as platforms for transparency and communication between the company’s management, board of directors, and shareholders.
FAQ
Is Star Health a good stock?
Star Health is a leading private health insurance company in India. It has a proven track record of expansion and profitability. The company has a healthy balance sheet and a strong management team. Star Health is considered to be a good long-term investment by many analysts.
Is Star Health owned by Tata?
No, Star Health is not owned by Tata. The company is privately held, with the promoter’s group holding a majority stake.
Is it good to buy star health?
Whether or not it is good to buy Star Health stock depends on your individual investment goals and risk tolerance. However, Star Health is a fundamentally strong company with a good long-term outlook. If you are looking for a long-term investment in the Indian health insurance sector, Star Health Share Price is a good option to consider.
What is the market share of Star Health?
Star Health Share Price has a market share of approximately 33% in the Indian private health insurance sector. The company is the largest private health insurance provider in India.
Conclusion of Star Health Share Price
In conclusion, Star Health Share Price and Allied Insurance Company Ltd. have exhibited strong financial performance, with significant growth in its earnings per share. The company’s valuation reflects its robust performance, while industry comparisons and analyst estimates indicate a positive outlook for the company. It’s important for investors to carefully analyze the company’s fundamentals, stock performance, and market dynamics before making investment decisions. With its solid financials, prudent risk management, and strong market position, Star Health is poised for continued growth in the health insurance sector.
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