Star Health & Allied Insurance Share Price Target 2026 to 2030

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Star Health & Allied Insurance Co Ltd Share Price Target 2026–2030

Star Health & Allied Insurance Company Ltd is India’s first standalone health insurer and the largest private player in the retail health insurance segment. With a 15.8% market share in the overall health insurance market (as of FY21) and ~44% among standalone health insurers (as of H1 FY26), Star Health has built a strong brand through its extensive agent network, digital platforms, and focus on affordable retail policies. However, recent quarters have seen sharp volatility in profitability due to elevated claims from pandemic-related catch-up treatments and regulatory changes. This article provides a data-backed outlook on the Star Health share price target 2026–2030.

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Share Price Target

Star Health & Allied Insurance Co Ltd: Company Overview

  • Founded: 2006
  • Headquarters: Chennai, Tamil Nadu
  • Key Segment: Retail health insurance (87% of Gross Written Premium)
  • Market Position: Largest private standalone health insurer in India
  • Distribution: 2.5 lakh+ agents, 1,500+ branches, strong digital presence

Star Health operates with a low-cost, high-volume model focused on individual and family floater policies. Its combined ratio—a key metric for insurers—stood at 98.9% in Q3 FY26, indicating near-breakeven underwriting performance.

Star Health & Allied Insurance Co Ltd: Key Financial Snapshot

MetricValue
Current Share Price₹469.00
Market Capitalization₹27,596.70 Cr
No. of Shares Outstanding58.77 Cr
52-Week High / Low₹534 / ₹327
P/E Ratio (TTM)61.86
P/B Ratio3.69
EPS (TTM)₹7.59
Book Value (TTM)₹127.12
ROE9.67%
ROCE12.04%
Dividend Yield0.00%
Face Value₹10
Cash₹668.43 Cr
Total Debt₹470 Cr
Debt-to-Equity0.06
Sales Growth (YoY)-46.22%
Profit Growth (YoY)-23.57%
Promoter Holding57.98%

Star Health & Allied Insurance Co Ltd Share Price Target Forecast (2026–2030)

YearTarget Price Range (₹)
2026₹500 – ₹560
2027₹530 – ₹610
2028₹560 – ₹670
2029₹590 – ₹740
2030₹620 – ₹810

Star Health & Allied Insurance Co Ltd Share Price Target 2026

YearShare Price Target 1Share Price Target 2
2026₹500₹560

Star Health reported a 23.57% YoY profit decline and 46.22% sales drop in FY25, primarily due to one-time impacts from pandemic-related claim normalization and conservative premium recognition. However, Q3 FY26 showed strong recovery with 414% YoY PAT growth (₹449 Cr), signaling stabilization. Trading at a P/E of 61.8x—rich for an insurer—the stock reflects long-term growth expectations. A 2026 target of ₹500–₹560 assumes continued improvement in the combined ratio and premium growth.

Star Health & Allied Insurance Co Ltd Share Price Target 2027

YearShare Price Target 1Share Price Target 2
2027₹530₹610

With India’s health insurance penetration still below 5%, long-term tailwinds remain strong. Star Health’s dominant retail position, asset-light model, and improving underwriting discipline support earnings recovery. Assuming EPS of ₹8.50–₹9.50 by FY27 and P/E of 58–62x (justified by growth leadership), the 2027 range is ₹530–₹610.

Star Health & Allied Insurance Co Ltd Share Price Target 2028

YearShare Price Target 1Share Price Target 2
2028₹560₹670

By 2028, benefits from scale, digital underwriting, and lower acquisition costs should reflect in margins. The company’s low debt (D/E: 0.06) and strong cash flow provide flexibility for growth. A P/E of 60–64x on projected EPS (~₹9.00–₹10.50) supports the ₹560–₹670 band.

Star Health & Allied Insurance Co Ltd Share Price Target 2029

YearShare Price Target 1Share Price Target 2
2029₹590₹740

Long-term demand for health insurance is driven by rising healthcare costs, awareness, and government mandates. Star Health’s 44% market share among standalone insurers gives it pricing power and data advantage. Using a P/E of 62–66x on FY29 EPS (~₹9.50–₹11.20), the 2029 target is ₹590–₹740.

Star Health & Allied Insurance Co Ltd Share Price Target 2030

YearShare Price Target 1Share Price Target 2
2030₹620₹810

Over a five-year horizon, Star Health’s value lies in its irreplaceable distribution, brand trust, and policyholder base—not dividends (0% yield). If it sustains 20%+ earnings CAGR and maintains underwriting discipline, a terminal P/E of 65–70x on FY30 EPS (~₹9.50–₹11.60) justifies the ₹620–₹810 range.

Star Health & Allied Insurance Co Ltd: Shareholding Pattern

CategoryHolding (%)
Promoters57.98%
Domestic Institutional Investors (DII)20.96%
Foreign Institutional Investors (FII)14.07%
Public & Retail6.99%
Others0%

High promoter holding ensures strategic continuity, while rising institutional interest reflects confidence in governance.

Star Health & Allied Insurance Co Ltd: Strengths vs Risks

Strengths:

  • Market leader in retail health insurance (44% among standalone insurers)
  • Asset-light, scalable agent-driven model
  • Strong balance sheet: low debt, high liquidity
  • Regulatory tailwinds: govt push for health coverage

Risks:

  • Extremely high P/E (61.8x) leaves little room for execution misses
  • Volatile profitability due to claim shocks (e.g., pandemic, hospital inflation)
  • No dividend history (0% yield) limits income appeal
  • Combined ratio sensitivity to medical cost inflation

Investment Suitability

FactorAssessment
Risk ProfileHigh
Ideal Time Horizon3–5+ years
VolatilityHigh (mid-cap insurance stock)
Dividend/Income PotentialNone (0% yield)
Best ForGrowth-oriented investors seeking India’s health insurance expansion story
Based on fundamentals and sector trends, the Star Health share price target 2026 is ₹500–₹560. The 2026–2030 cumulative range is ₹500 to ₹810.
As of H1 FY26, Star Health holds:
  • 44% market share among standalone health insurers (SAHI)
  • 13% of India’s total health insurance market
You can buy Star Health shares through any SEBI-registered broker (e.g., Groww, Zerodha, ICICI Direct) using its NSE symbol STARHEALTH. Ensure you have a Demat and trading account.
Yes—for long-term, high-risk investors who believe in India’s health insurance growth. However, its rich valuation (P/E: 61.8x) demands patience. Avoid lump-sum entry; consider SIP or staggered buying.

Final Verdict

Star Health remains the dominant force in India’s retail health insurance space, with unmatched scale and brand recall. Despite short-term profit volatility, its strategic positioning, low leverage, and sector tailwinds make it a credible long-term compounder. Our Star Health share price target 2026–2030 (₹500 to ₹810) reflects steady appreciation—if execution stays on track.

Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.

Sources

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