ICICI Securities has issued a buy rating on Star Health and Allied Insurance with a target price of ₹644 in its research report dated May 03, 2026. According to the brokerage's analysis, the stock is positioned for steady earnings growth driven by improved operational metrics and strategic underwriting decisions.
The company demonstrated robust financial results in FY26, achieving ~13% year-on-year growth in Gross Earned Premium (GEP) and 230 basis points improvement in IFRS Combined Ratio. As reported by ICICI Securities, the insurer recorded a 49% year-on-year increase in normalised PAT with an 8% yield, reflecting strong operational efficiency and profitability improvements.
ICICI Securities identified three key factors driving Star Health's performance trajectory. The brokerage highlighted strong retail fresh business growth of 37% year-on-year in FY26, strategic underwriting decisions including reduced group exposure and repricing of ~80% of the portfolio by Q1FY27, and higher equity AUM mix increasing from 6.7% in March 2024 to 18.5% in March 2026 while maintaining EOM limits at 30.5% in FY26.
The revised target price of ₹644 represents a significant increase from the earlier target of ₹570, based on 22x FY28E EPS of ₹29.3 under IFRS accounting standards. ICICI Securities maintains its buy recommendation, citing the company's steady earnings growth trajectory and improved balance between volume growth and profitability. The brokerage noted that key risks include higher competitive intensity and claims that could impact profitability.
