Goldman Sachs, Motilal Oswal, others give ‘buy' rating to THIS mutual fund, FIIs' favourite stock
In its latest report, Goldman Sachs highlighted that it expects a 17.2% upside for the Star Health shares, citing the 4% YoY growth in its gross written premium (GWP) due to the company's combination of value and volumes in the April-June quarter.
'We lower our FY26-28E EPS estimates by up to 18% to factor in Q1 results, relatively gradual combined ratio improvement and revised outlook for the business over the medium term, and we maintain our 'Buy' rating on the stock,' said Goldman, highlighting that there remains room for improvement of the loss ratio trends hereon.
Motilal Oswal, in its report, cited the 12% YoY rise in the net interest premiums of Star Health to ₹ 3,940 crore in the first quarter of FY2025-26.
'STARHEAL's pricing actions, underwriting strategy, and reducing pressure from claim frequency and severity will drive an improvement in the company's loss ratio trajectory in the coming quarters,' said Motilal Oswal, targeting an upside of 16% for the stock.
Yes Securities expects the shares of the private insurance company to rise in the upcoming months. The brokerage firm also said that the second-quarter claims are expected to be higher, but the price hikes taken earlier will also play out in the upcoming quarter for the insurance company.
'The company has taken price corrections (hikes), altered underwriting strategies, recalibrated business and also exited some, all of which will flow through over a period of time, leading to improvement in loss ratio,' they said in the stock report.
Loss ratio is the equation between the total premiums earned and actual losses incurred over a given period of time.
Foreign Investors, including Foreign Direct Investments (FDIs), Foreign Portfolio Investors (FPIs), and other Foreign Institutional Investors (FIIs), hold a total of 13.76% stake in Star Health, as per the official public shareholding data.
Massachusetts Institute of Technology, with a 1.64% stake, Mio Star, with 1.14%, Government Pension Fund Global, with 2.38%, and Theleme India Master Fund Ltd, with 1.53%, were among the prominent foreign investors.
Other foreign stakeholders were FDIs at 3.06%, FPIs at 10.49% and 0.20%, as per the official data.
ICICI Prudential Banking and Financial Services, HDFC Mutual Fund, and SBI Mutual Fund are the mutual funds that currently hold stake in the company.
Goldman Sachs' Target: ₹ 500 (17.2% in a 12-month period); Buy at CMP or ₹ 426.70.
Motilal Oswal Target: ₹ 520 (16% upside); Buy at CMP or ₹ 448.
Yes Securities Target: ₹ 540; Buy at CMP.
Star Health and Allied Insurance Company shares closed 0.76% lower at ₹ 444.50 after Thursday's stock market session, compared to ₹ 447.90 at the previous stock market session.
The private sector insurer's shares have lost 50.92% since it was listed on the Indian stock market in December 2021. In the last one-year period, Star Health shares have dropped 26.57%.
On a year-to-date (YTD) basis, the stock has lost 7.54% in 2025. However, the company shares have gained 5.29% in the last one-month period and are trading 4.17% higher in the last five market sessions on the Indian markets.
Star Health's share price hit its 52-week high level at ₹ 647.65 on 9 September 2024, while the 52-week low level was at ₹ 330.05 on 7 April 2025, according to the data collected from the BSE website. The company's market capitalisation (M-Cap) stood at ₹ 26,179.66 crore as of the stock market close on Thursday, 31 July 2025.
Read all stories by Anubhav Mukherjee
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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