Niva Bupa Health Insurance Company Limited

Financial Services — Insurance - Life · NSE

₹75.81−₹0.20 (−0.26%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Niva Bupa Health Insurance Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Niva Bupa Health Insurance Company Limited provides health insurance products in India.

IndustryInsurance - Life

SectorFinancial Services

Annual revenue₹7,106 Cr

How does it make money?

Turns over ₹7,106 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD, ICICI PRU LIFE INS CO LTD, ICICI LOMBARD GIC LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.6%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 23.5% and earnings to grow about 24.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+23.5%

Est. earnings growth+24.9%

Analysts8

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +154% while net margin moved +311% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+154%

Margin effect+311%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

60/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.9x

2Y Median

105.4x

25 monthly readings · mean 114.5x · range 58.5x–206.0x

Sector Median

47.6x

median of 4 sector peers

🟢Current valuation is approximately 63% below its 2y median of 105.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 18% below the peer median of 47.6x.

vs. its own history

Cheap

105.4x median over 25 months · -63%

vs. sector peers

Fair

47.6x median of 4 peers · -18%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

64.7x

PEG

0.33

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 0.4% to 4.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 63% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 27% a year✓ 36.4% CAGR
Latest reported year was 27.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 10%✓ 12.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 105.4x✓ 38.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹14,022 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.95

Profitable

Profitable on a per-share basis

ROE

12.1%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

6.80x

High

High leverage

Revenue Growth (YoY)

27.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

89.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹856 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.8%

Average

Average margins

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

1358.16

Comfortable

Healthy short-term liquidity

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

77.3 / 80.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,799 Cr	₹4,427 Cr	₹5,691 Cr	₹7,106 Cr	+36.4%
EBITDA	₹90 Cr	₹164 Cr	₹302 Cr	₹218 Cr	+34.5%
EBITDA Margin	3.2%	3.7%	5.3%	3.1%	—
PAT (Net Profit)	₹13 Cr	₹82 Cr	₹214 Cr	₹131 Cr	+118.5%
EPS	₹0.07	₹0.45	₹1.2	₹0.71	+117.9%
ROE	0.4%	2.1%	7.0%	4.1%	—
Total Debt	₹250 Cr	₹250 Cr	₹250 Cr	₹250 Cr	+0.0%
Free Cash Flow	₹555 Cr	₹780 Cr	₹1,613 Cr	₹856 Cr	+15.6%

🟢 Revenue has grown at 36.4% a year over 3 years.

🟢 EBITDA has grown at 34.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.1% over 3 years.

🟢 PAT (Net Profit) has grown at 118.5% a year over 3 years.

🟢 EPS has grown at 117.9% a year over 3 years.

🟢 ROE has risen from 0.4% to 4.1% over 3 years (+3.6 pts).

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

🟢 Free Cash Flow has grown at 15.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11,276 Cr

Total Liabilities

₹8,077 Cr

Cash & Equivalents

₹159 Cr

Operating Cash Flow

—

Capex

-₹49 Cr

Shareholding (proxy)

Institutional Holding

15.9%

Insider Holding

75.1%

Analyst Consensus

Recommendations

10 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹99.09

+30.7% vs CMP

Target Range

₹90 – ₹105

Peer Comparison

Company	P/E	ROE
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%
ICICI PRU LIFE INS CO LTD	36.7x	12.9%
ICICI LOMBARD GIC LIMITED	33.0x	13.6%

Recent News

1 positive2 mixed3 general

Niva Bupa IPO: Growth, claim settlement and retention metrics compared with industry peers

Upstox, 14 Oct

Motilal Oswal believes IRDAI draft is positive for this insurance stock, sees 31% upside- Check target price, rationale

Livemint, 25 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Niva Bupa issues call option notice for ₹150 crore NCD redemption

scanx.trade, 15 OctFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Niva Bupa Health Insurance (NSEI:NIVABUPA) Stock Price

Simply Wall Street, 05 Aug

Stocks To Buy: Motilal Oswal expects this insurance stock to rise 31% after the IRDAI draft paper

CNBC TV18, 25 Sept

Niva Bupa Health Insurance Company Q4 Results: Profit surges 67% to Rs 345 crore

The Economic Times, 08 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingProfitability · Valuation

WeakBusiness Quality · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑