STARHEALTH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | STARHEALTH | Market Cap | 30,929 Cr. | Current Price | 526 ₹ | High / Low | 587 ₹ |
| Stock P/E | 55.5 | Book Value | 163 ₹ | Dividend Yield | 0.00 % | ROCE | 8.57 % |
| ROE | 6.70 % | Face Value | 10.0 ₹ | DMA 50 | 481 ₹ | DMA 200 | 466 ₹ |
| Chg in FII Hold | 0.99 % | Chg in DII Hold | -0.65 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 70.1 | MACD | 16.6 | Volume | 7,71,302 | Avg Vol 1Wk | 23,86,248 |
| Low price | 341 ₹ | High price | 587 ₹ | PEG Ratio | -16.1 | Debt to equity | 0.05 |
| 52w Index | 75.1 % | Qtr Profit Var | 21,731 % | EPS | 9.47 ₹ | Industry PE | 31.7 |
📊 STARHEALTH reflects weak fundamentals with low ROE (6.70%) and ROCE (8.57%), indicating inefficient capital utilization. EPS of ₹9.47 provides a modest earnings base, but profitability has declined (PAT ₹128 Cr. → ₹111 Cr. QoQ). Valuations are stretched with P/E (55.5) compared to industry average (31.7), and PEG ratio (-16.1) highlights poor growth relative to valuation. Dividend yield is absent (0.00%), limiting passive returns. Current price ₹526 is above DMA 50 (₹481) and DMA 200 (₹466), showing strong bullish momentum near its 52-week high (₹587). Entry zone is attractive near ₹470–500 for accumulation.
💡 Long-term investors may hold with a 2–4 year horizon, focusing on earnings recovery and ROE improvement. Exit strategy: partial profit booking near ₹570–580 resistance or full exit if profitability continues to weaken.
Positive
- 📈 Low debt-to-equity ratio (0.05) ensures financial stability.
- 💰 EPS of ₹9.47 provides earnings visibility.
- 📊 FII holding increased (+0.99%), showing foreign investor confidence.
Limitation
- ⚠️ Weak ROCE (8.57%) and ROE (6.70%).
- 📉 High P/E (55.5 vs industry 31.7) indicates overvaluation.
- 📊 Negative PEG ratio (-16.1) reflects poor growth efficiency.
- 📉 Dividend yield of 0.00% offers no passive income.
Company Negative News
- 📉 PAT declined from ₹128 Cr. to ₹111 Cr. QoQ.
- 📊 DII holding decreased (-0.65%), showing reduced domestic investor confidence.
Company Positive News
- 📈 Technicals: RSI at 70.1 and MACD positive (16.6), showing bullish momentum.
- 📊 Strong 52-week performance (+75.1%).
Industry
- 🏥 Industry PE at 31.7 is much lower than STARHEALTH’s 55.5, highlighting premium valuation.
- 📈 Health insurance sector benefits from rising demand and regulatory support in India.
Conclusion
⚖️ STARHEALTH is a weak candidate for long-term investment due to low ROE/ROCE, stretched valuations, and declining profitability. Ideal entry is near ₹470–500. Long-term investors may hold cautiously for 2–4 years, but exit near ₹570–580 or on further deterioration of earnings.
This structured HTML report captures STARHEALTH’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against ICICI Lombard, HDFC Life, and SBI Life to highlight relative positioning in the insurance sector?