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

• Market Cap: ₹281.51B
• Dividend Yield: N/A
• Average Volume (3M): 55.83K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.77
• Revenue Growth: 24.82%
• EPS Growth: -33.01%
• Country: IN
• Employees: 15,913
• Sector: Healthcare
• Sector Strength: 45
• Industry: Insurance - Diversified
• EPS (TTM): 4.50
• Shares Outstanding: 587,949,900
• 10 Day Avg. Volume: 60,673
• 30 Day Avg. Volume: 55,831
• 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: ₹489.00
• Price Target Upside: 2.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ₹489.00 ▲(2.14% Upside)

Star Health & Allied Insurance Co. Ltd. demonstrates strong financial performance with consistent revenue growth and improved profitability, which significantly contributes to the overall score. The technical analysis supports a positive trend, although the valuation indicates the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

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. makes money primarily through the sale of insurance policies. The company's revenue model is based on collecting premiums from policyholders, which forms the bulk of its income. Key revenue streams include individual health insurance plans, group health insurance policies for corporates, and specialized products like personal accident and travel insurance. Additionally, the company earns investment income from the premiums collected, which are invested in various financial instruments. Partnerships with hospitals and healthcare providers enhance its service offerings, contributing to customer retention and acquisition. The company's financial performance is influenced by factors such as claim ratios, policy renewal rates, and regulatory changes in the insurance sector.

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	165.25B	161.12B	144.50B	121.00B	106.02B	50.51B
Gross Profit	165.25B	161.12B	144.50B	122.41B	106.02B	50.51B
EBITDA	6.41B	8.61B	12.68B	9.67B	-13.05B	-9.72B
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: Positive
• Last Price: 478.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STARHEALTH, the sentiment is Positive. The current price of 478.75 is above the 20-day moving average (MA) of 448.38, above the 50-day MA of 442.65, and above the 200-day MA of 425.83, indicating a bullish trend. The MACD of 3.24 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 88.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MEDANTA	71 Outperform	₹372.49B	69.68	―	0.04%	15.42%	10.66%
STARHEALTH	69 Neutral	₹281.51B	47.71	―	―	24.82%	-33.01%
MARKSANS	69 Neutral	₹74.43B	21.26	―	0.47%	16.94%	4.90%
HCG	61 Neutral	₹96.45B	259.55	―	―	16.85%	-29.57%
APLLTD	60 Neutral	₹182.79B	30.31	―	1.16%	8.20%	-4.26%
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 Insurance Achieves Robust Q1FY26 Growth

Star Health and Allied Insurance Co. Ltd. reported a strong financial performance for Q1FY26, with a 44% increase in Profit After Tax to INR 438 crore and a 13% growth in Gross Written Premium. The company attributes its success to prudent underwriting practices, improved claims service, and strategic investments in technology and digital channels, reinforcing its leadership in the retail health insurance sector.