India's Star Health and Allied Insurance rises after Investec upgrades to 'buy'

Star Health and Allied Insurance

25/02/2026 06:57

**Shares of Star Health and Allied Insurance STAU.NS up 2.7% to 468.15 rupees

**Investec upgrades stock to "Buy" from "Sell", increases PT to 535 rupees from 425 rupees

**Brokerage says co is emerging from a challenging FY24 and FY25

**Expects improvement to sustain on rebound in fresh business growth following the GST cuts,  full-year benefit of annual price hikes, and  intensified industry-wide and company-specific initiatives to curb fraud, waste, and abuse

**Notes STAU's ability to retain customers despite adverse publicity around claims servicing highlights strong franchise stickiness and brand resilience

**Investec says the risk-reward of STAU is favourable at 12-month forward P/E valuations of 33.6x, given the recovery in earnings

**Expects co to report insurance revenue growth of 16% in FY27E and FY28E

**YTD, stock up 3%

(Reporting by Mridula Kumar in Bengaluru)

((Mridula.Kumar@thomsonreuters.com;))