Star Health & Allied Insurance Co. Ltd. (STARHEALTH) AI Stock Analysis

• Market Cap: ₹264.78B
• Dividend Yield: N/A
• Average Volume (3M): 42.40K
• Price to Earnings (P/E): 49.6
• Beta (1Y): 0.94
• Revenue Growth: 28.04%
• EPS Growth: -38.44%
• Country: IN
• Employees: 15,913
• Sector: Healthcare
• Sector Strength: 45
• Industry: Insurance - Diversified
• EPS (TTM): 0.90
• Shares Outstanding: 588,398,800
• 10 Day Avg. Volume: 41,268
• 30 Day Avg. Volume: 42,396
• PEG Ratio: -1.33
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 15.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹565.00 ▲(22.89% Upside)

Star Health & Allied Insurance Co. Ltd. demonstrates strong financial performance with consistent revenue growth and improved profitability, which is the most significant factor in its score. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The high P/E ratio suggests the stock is overvalued, which could limit future gains. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Star Health's consistent revenue growth of 28% indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Management

Robust cash flow management with operating cash flow exceeding net income ensures liquidity and supports sustainable operations.

Leverage Reduction

Reduced leverage enhances financial stability and reduces risk, providing a stronger foundation for future growth and investment.

Negative Factors

Earnings Decline

A significant decline in EPS growth suggests profitability challenges, potentially impacting investor confidence and future earnings potential.

Initial High Leverage

Past high leverage levels posed financial risks, which could have long-term implications if not managed carefully despite recent improvements.

Past Cash Flow Fluctuations

Past fluctuations in cash flow from investing activities indicate potential volatility in financial management, affecting long-term planning.

Star Health & Allied Insurance Co. Ltd. Business Overview & Revenue Model

Company Description

Star Health and Allied Insurance Company Limited provides health insurance products. It offers retail health products to various customer segments, including individuals, families, students, and senior citizens, as well as persons with pre-existing medical conditions across the middle-market customer segment; and group health insurance policies provide to employees of corporates, including SMEs through company health insurance plans. The company also provides personal accident and travel insurance. It distributes its products through individual agents, brokers, corporate agent banks, other corporate agents, and online channel partners comprising web aggregators, as well as directly to customers. As of September 30, 2021, the company had 779 health insurance branches across 25 states and 5 union territories in India. Star Health and Allied Insurance Company Limited was incorporated in 2005 and is based in Chennai, India.

How the Company Makes Money

Star Health & Allied Insurance Co. Ltd. generates revenue primarily through the sale of insurance premiums collected from policyholders. The company offers a variety of health insurance products, and the premiums collected form a significant portion of its income. Additionally, STARHEALTH earns money through investment income generated by investing the premiums in various financial instruments, such as stocks, bonds, and mutual funds. The company also benefits from partnerships with healthcare providers and hospitals, which may lead to increased customer acquisition and retention. Furthermore, STARHEALTH may leverage regulatory incentives and government health initiatives to expand its reach and enhance profitability.

Star Health & Allied Insurance Co. Ltd. Financial Statement Overview

Summary

Star Health & Allied Insurance Co. Ltd. presents a strong financial position with consistent revenue growth and improving profitability metrics. The company has successfully reduced leverage, enhanced equity returns, and maintained solid cash flows, indicating financial stability and operational efficiency. While past challenges were evident in initial years, the recent improvements signal a positive trajectory for future performance.

Income Statement

Star Health & Allied Insurance Co. Ltd. has demonstrated a solid growth trajectory with Total Revenue increasing consistently over the years, from 2020 to 2025. The Gross Profit Margin remains strong at 100% consistently, indicating excellent cost management. Net Profit Margin has improved significantly from negative in 2021 to positive 4.01% in 2025, showcasing a successful turnaround. The EBIT and EBITDA margins have also improved, reflecting better operational efficiency. However, the initial years saw negative EBIT and EBITDA, indicating past challenges.

Balance Sheet

The company maintains a healthy Debt-to-Equity Ratio, declining from 0.15 in 2020 to 0.07 in 2025, demonstrating reduced leverage and improved financial stability. The Return on Equity has turned positive in recent years, reaching 9.08% in 2025, indicating effective use of shareholder capital. The Equity Ratio remains strong, showcasing a stable financial structure. However, initial high leverage in past years posed risks.

Cash Flow

Star Health has shown robust cash flow management with Operating Cash Flow consistently exceeding Net Income, indicating strong cash-generating abilities. The Free Cash Flow has exhibited growth, reflecting efficient capital expenditure management. The Operating Cash Flow to Net Income Ratio is stable, supporting a strong liquidity position. However, fluctuations in cash from investing activities in earlier years hint at past challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	169.05B	164.88B	144.13B	122.41B	106.02B	57.75B
Gross Profit	141.49B	138.61B	121.61B	104.13B	91.10B	44.64B
EBITDA	7.87B	9.98B	12.68B	9.67B	-13.05B	-13.72B
Net Income	5.89B	6.46B	8.45B	6.19B	-10.41B	-10.86B
Balance Sheet
Total Assets	209.38B	207.85B	180.54B	163.58B	152.79B	112.26B
Cash, Cash Equivalents and Short-Term Investments	0.00	6.58B	13.68B	10.49B	12.11B	21.02B
Total Debt	4.70B	4.70B	4.70B	4.70B	7.20B	2.50B
Total Liabilities	132.71B	136.72B	113.23B	97.69B	88.83B	70.09B
Stockholders Equity	76.67B	71.12B	67.32B	65.89B	63.96B	42.17B
Cash Flow
Free Cash Flow	0.00	12.96B	11.86B	12.29B	-340.86M	8.19B
Operating Cash Flow	0.00	13.79B	13.10B	12.76B	290.43M	8.65B
Investing Cash Flow	0.00	-11.51B	-11.77B	-10.97B	-37.86B	-24.18B
Financing Cash Flow	0.00	-42.00M	229.73M	-2.68B	25.36B	26.39B

Star Health & Allied Insurance Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 459.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STARHEALTH, the sentiment is Negative. The current price of 459.75 is above the 20-day moving average (MA) of 456.76, below the 50-day MA of 476.02, and above the 200-day MA of 441.89, indicating a neutral trend. The MACD of -6.74 indicates Negative momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 34.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:STARHEALTH.

Star Health & Allied Insurance Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MARKSANS	70 Neutral	₹78.83B	22.41	―	0.44%	14.80%	1.35%
HCG	67 Neutral	₹90.12B	252.67	―	―	17.58%	-38.20%
STARHEALTH	66 Neutral	₹264.78B	49.62	―	―	28.04%	-38.44%
MEDANTA	65 Neutral	₹316.29B	56.27	―	0.04%	15.78%	15.01%
APLLTD	60 Neutral	₹157.23B	24.78	―	1.28%	11.42%	-1.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Star Health & Allied Insurance Co. Ltd. Corporate Events

Star Health Closes Trading Window Ahead of Q3 FY26 Results

Star Health & Allied Insurance Co. Ltd. has announced the closure of its trading window for designated persons and their immediate relatives from January 1 to January 30, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal insider trading policy. The blackout period is being imposed ahead of the announcement of the company’s unaudited financial results for the quarter and nine months ended December 31, 2025, with the exact board meeting date to be notified later, signaling the upcoming financial disclosure cycle to investors and other market participants.

Star Health Schedules Investor Meeting to Strengthen Market Relations

Star Health & Allied Insurance Co. Ltd. has announced a scheduled meeting with analysts and institutional investors on December 18, 2025, in Chennai. This meeting, in compliance with regulatory requirements, aims to engage with key stakeholders, potentially impacting the company’s market perception and investor relations.

Star Health Insurance’s Rating Affirmed at ‘IND AA+’ with Stable Outlook

Star Health and Allied Insurance Company Limited has had its rating affirmed at ‘IND AA+’ with a stable outlook by India Ratings and Research, highlighting its strong market leadership, robust underwriting practices, and differentiated operating model. The company maintains a 33% share of the retail health insurance market in India and reported a gross written premium of ₹16,781 crore for FY25. With a solvency ratio of 2.21x, Star Health’s financial resilience is supported by its operational model, which includes a large team of in-house doctors and efficient claims processing systems. The reaffirmation underscores Star Health’s role as a trusted partner in India’s healthcare ecosystem and its commitment to expanding access to quality healthcare protection.