Star Health and Allied Insurance Company Limited

Financial Services — Insurance - Life · NSE

₹547.70−₹2.30 (−0.42%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Star Health and Allied 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?

Star Health and Allied Insurance Company Limited provides health insurance products in India.

IndustryInsurance - Life

SectorFinancial Services

Employees18,566

Annual revenue₹18,148 Cr

How does it make money?

Turns over ₹18,148 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 18,566 employees supports ₹97.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin4.9%

Net margin3.1%

Revenue / employee₹97.8 lakh

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.

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

ICICI PRU LIFE INS CO LTDP/E 36.7x · ROE 12.9%

ICICI LOMBARD GIC LIMITEDP/E 33.0x · ROE 13.6%

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.

ROE7.5%

Peer median ROE13.6%

What is the outlook?

19 analysts covering the stock expect revenue to grow about 18.1% and earnings to grow about 20.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.1%

Est. earnings growth+20.9%

Analysts19

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +48% while net margin moved -39% 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+48%

Margin effect-39%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.5% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

54/ 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

38.2x

3Y Median

48.4x

40 monthly readings · mean 45.9x · range 25.1x–61.1x

Sector Median

47.6x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 48.4x. 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 20% below the peer median of 47.6x.

vs. its own history

Cheap

48.4x median over 40 months · -21%

vs. sector peers

Fair

47.6x median of 4 peers · -20%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

38.2x

P/B

3.18x

EV/EBITDA

34.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 38.2x the stock trades 21% below its own median of 48.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 7.9% to 4.9% over 3 years.
Receivables growing faster than sales
Receivables are up 7229% against revenue growth of 48% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 3.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 21% 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?

Margins are being competed away
EBITDA margin has fallen from 7.9% to 4.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.

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

1Revenue growth stays above 11% a year✓ 14.0% CAGR
Latest reported year was 1407.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 7.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 48.4x✓ 38.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 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 · 5 neutral · 2 weak

Market Cap

₹32,227 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

38.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.18x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.32

Profitable

Profitable on a per-share basis

ROE

7.5%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

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

Debt/Equity

6.22x

High

High leverage

Revenue Growth (YoY)

1407.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

109.6%

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

₹1,795 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹547.7

P/E (Forward)

19.5x

Improving

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

ROA

2.5%

Weak

Assets generate little profit

Operating Margin

13.7%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

548.4 / 562.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12,241 Cr	₹14,413 Cr	₹16,488 Cr	₹18,148 Cr	+14.0%
EBITDA	₹967 Cr	₹1,268 Cr	₹998 Cr	₹898 Cr	-2.4%
EBITDA Margin	7.9%	8.8%	6.1%	4.9%	—
PAT (Net Profit)	₹619 Cr	₹845 Cr	₹646 Cr	₹557 Cr	-3.4%
EPS	₹10.41	₹14.19	₹10.86	₹9.47	-3.1%
ROE	9.4%	12.6%	9.1%	7.4%	—
Total Debt	₹470 Cr	₹470 Cr	₹470 Cr	₹470 Cr	+0.0%
Free Cash Flow	₹1,229 Cr	₹1,186 Cr	₹1,296 Cr	₹1,795 Cr	+13.5%

🟢 Revenue has grown at 14.0% a year over 3 years.

🔴 EBITDA has shrunk at 2.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.9% to 4.9% over 3 years (-3.0 pts).

🔴 PAT (Net Profit) has shrunk at 3.4% a year over 3 years.

🔴 EPS has shrunk at 3.1% a year over 3 years.

🔴 ROE has fallen from 9.4% to 7.4% over 3 years (-2.0 pts).

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

🟢 Free Cash Flow has grown at 13.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹24,064 Cr

Total Liabilities

₹16,513 Cr

Total Debt

₹470 Cr

Cash & Equivalents

₹1,444 Cr

Operating Cash Flow

—

Capex

-₹78 Cr

Shareholding (proxy)

Institutional Holding

24.2%

Insider Holding

62.2%

Corporate Actions

Next Earnings

27 Oct 2026

Analyst Consensus

Recommendations

17 Buy · 2 Hold · 2 Sell

Target Price (Mean)

₹646.5

+18.0% vs CMP

Target Range

₹440 – ₹760

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

Star Health and Allied Insurance Company Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Simply Wall Street, 03 AugAnalyst view

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

STARHEALTH Share/Stock Price Live, NSE

TechGraph, 08 Oct

Stock Radar: Star Health stock breaks out from multi-year resistance band to hit fresh 52-week high in Jun

The Economic Times, 30 Jun

Star Health Q1 profit beats estimates; Nomura raises target price to Rs 700, maintains Buy

Moneycontrol.com, 31 JulAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Star Health Share Price Falls 2.04%: Price Action Analysis

Univest, 28 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Insurance Stocks Edge Higher After Selloff. PB Fintech, Star Health, Go Digit, Others Gain

NDTV Profit, 25 Sept

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

🔴Business QualityWeak6.7/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair9.5/15

🟢RiskLow7.5/10

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.

This thesis breaks if

✓Revenue growth stays above 11% a year14.0% CAGR
✓EBITDA margin holds above 3%4.9%
✗Return on equity stays above 8%7.5%
✓Valuation vs its own median of 48.4x38.2x today