Rakesh Jhunjhunwala confronted a heavy loss in his common insurance coverage agency, Star Well being and Allied Insurance coverage Firm on Monday. After giving double-digit development final month, Star Well being shares started August on a bearish tone as traders booked revenue. Star Well being is the second largest inventory in Jhunjhunwala’s portfolio after Titan in worth phrases. The massive bull of D-Road can be the promoter of the corporate. On Monday, Star Well being shares dropped after the corporate’s monetary efficiency announcement for the quarter ending June 30, 2022 (Q1FY23). Nonetheless, regardless of the present selloff, Star Well being shares have sturdy prospects forward as analysts give purchase rankings because of the firm’s product and distribution efforts which add confidence to its earnings potential.
On Monday, Star Well being shares settled at ₹710.20 apiece down by ₹32.45 or 4.37% on BSE. The shares have touched an intraday low of ₹705 apiece and excessive of ₹765 apiece within the day. On the present worth stage, the corporate’s market cap is round ₹40,914.63 crore.
Final month, Star Well being shares skyrocketed by almost 57%.
As of June 30, 2022, Rakesh holds 8,28,82,958 fairness shares or 14.39% of the corporate. He moreover holds 1,78,70,977 fairness shares or 3.10% in Star Well being by his spouse Rekha Jhunjhunwala. Cumulatively, the couple holds 10,07,53,935 fairness shares or 17.49% of the corporate.
Rakesh manages his and spouse’s portfolio.
On account of Monday’s downfall, Rakesh’s wealth in Star Well being declined by almost ₹326.95 crore (100,753,935 X ₹32.45) in a single day.
As per Trendlyne knowledge, Jhunjhunwala’s holding is valued at round ₹7,151 crore in Star Well being as of August 1, 2022. By July 29, his shareholding was valued at round ₹7,528.3 crore within the firm.
In Q1FY23, Star Well being posted a internet revenue of ₹213.24 crore in contrast a lack of ₹209.78 crore in Q1FY22 and a loss ₹82.03 crore in Q4FY22. The corporate’s whole revenue rose to ₹2,809.01 crore in Q1FY23 towards ₹2,331.90 crore in the identical quarter final yr and ₹2,740.38 crore within the previous quarter.
Must you put money into Star Well being shares put up Q1?
Ansuman Deb and Ravin Kurwa Analysis Analysts at ICICI Securities mentioned, “Star Well being’s (Star) Q1FY23 outcome underlines sturdy enterprise execution round product and distribution which give confidence on the steerage of outperforming the trade by way of retail premium development and sustaining total loss/mixed ratio of 63-65%/93-95%, respectively. Distribution efforts span throughout channels together with rural focus whereas product technique makes use of new designs, repricing in addition to hospital negotiations. The mix of 32% retail well being premium market share in Q1FY23 and total sturdy retail medical health insurance development outlook make us constructive on Star.”
The duo added, “Keep BUY with a revised goal worth of Rs858 (Rs700 earlier) based mostly on 40x FY24E EPS of Rs21.5 (earlier Rs17.6). We issue 19% premium CAGR between FY22-24E, mixed ratio of 95/94% and funding yield of seven%/7.5% for FY23/24E, respectively. Now we have upgraded our FY24 earnings to issue the renewed confidence by way of earnings potential seen within the firm’s product and distribution technique.”
Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint.
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Supply: Live Mint