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.
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
| Metric | Value |
|---|---|
| Current Share Price | ₹469.00 |
| Market Capitalization | ₹27,596.70 Cr |
| No. of Shares Outstanding | 58.77 Cr |
| 52-Week High / Low | ₹534 / ₹327 |
| P/E Ratio (TTM) | 61.86 |
| P/B Ratio | 3.69 |
| EPS (TTM) | ₹7.59 |
| Book Value (TTM) | ₹127.12 |
| ROE | 9.67% |
| ROCE | 12.04% |
| Dividend Yield | 0.00% |
| Face Value | ₹10 |
| Cash | ₹668.43 Cr |
| Total Debt | ₹470 Cr |
| Debt-to-Equity | 0.06 |
| Sales Growth (YoY) | -46.22% |
| Profit Growth (YoY) | -23.57% |
| Promoter Holding | 57.98% |
Star Health & Allied Insurance Co Ltd Share Price Target Forecast (2026–2030)
| Year | Target 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
| Year | Share Price Target 1 | Share 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
| Year | Share Price Target 1 | Share 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
| Year | Share Price Target 1 | Share 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
| Year | Share Price Target 1 | Share 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
| Year | Share Price Target 1 | Share 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
| Category | Holding (%) |
|---|---|
| Promoters | 57.98% |
| Domestic Institutional Investors (DII) | 20.96% |
| Foreign Institutional Investors (FII) | 14.07% |
| Public & Retail | 6.99% |
| Others | 0% |
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
| Factor | Assessment |
|---|---|
| Risk Profile | High |
| Ideal Time Horizon | 3–5+ years |
| Volatility | High (mid-cap insurance stock) |
| Dividend/Income Potential | None (0% yield) |
| Best For | Growth-oriented investors seeking India’s health insurance expansion story |
- 44% market share among standalone health insurers (SAHI)
- 13% of India’s total health insurance market
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
- Screener.in – Star Health Consolidated Page (FY2025 + TTM)
- Finology Ticker – STARHEALTH Financial Ratios & Valuation
- Star Health Investor Presentation (Q3 FY26, Jan 2026)
- IRDAI Annual Reports – Health Insurance Market Share Data
- BSE India – Annual Report FY2025