MOSL: Morning India (11/October/21): 1. Star Health (Compelling business model in a beckoning industry); 2. India Strategy; 3. Aviation; 4. TCS; 5. Motherson Sumi; 6. EcoScope; 7. India Mutual Fund Industry
MOrning India (11/October/21): 1. Star Health (Compelling business model in a beckoning industry); 2. India Strategy; 3. Aviation; 4. TCS; 5. Motherson Sumi; 6. EcoScope; 7. India Mutual Fund Industry
Today’s top research Idea
Star Health: Compelling business model in a beckoning industry
- STAR is the largest retail health insurer in India with a market share of 31%. In the overall health segment, it has a market share of 16%. In the past five years, it has witnessed a gross premium CAGR of 33% and we expect a CAGR of 26% over the next three years.
- The industry is highly underpenetrated with 3% of the population covered under retail health scheme. Furthermore, COVID 19 has created a pull for demand for health insurance products. We expect the momentum in demand to sustain over a longer period of time (18-20% CAGR).
- STAR deserves premium valuations on the back of relatively better profitability, with a combined ratio of 92-94% on a steady-state basis (ICICI Lombard: 100%, New India: 113%, GIC Re: 112%), a healthy product suite, a strong distribution network, and management pedigree.
Piping hot news
Amazon, Flipkart, others see strong festive season sales despite Shradh start
As the first week of the flagship festive sales comes to a close, ecommerce players are said to have recorded higher sales than last year, but the numbers are likely to be relatively smaller than what they had expected in the run up to the sale events, according to industry executives, analysts and logistics experts.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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