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Portfolio of Rakesh Jhunjhunwala: After a low quotation on December 10, 2021, the share of Star Health and Allied Insurance has continued to plunge. On Monday, Star Health stock price hit a new all-time low of ₹511 each on NSE. Earlier, also on Friday and Thursday, this Rakesh Jhunjhunwala stock hit a fresh 52-week low. Comparing the Star Health stock price today with the Star Health IPO price range of ₹870 to ₹900 per share, this Rakesh Jhunjhunwala portfolio stock has corrected as much as 43%, which could attract long-term positional investors.
According to stock market experts, this Rakesh Jhunjhunwala-backed company has gone loss-making due to the Covid-19 pandemic. Apart from that, the higher price of the stock was also a reason for the weak listing and continued selling. They said the current decline in Star Health shares is a big opportunity for long-term buyers. However, they advised positional investors to wait and buy ₹455 to ₹475 levels as the stock may still correct from current levels.
Speaking on the Star Health share price plunge, Punit Patni, Equity Research Analyst at Swastika Investmart, said: “Star Health is a major health insurance player in India with a share of market of 32% in retail segment and 14% in overall healthcare.The business has a long growth track due to low health insurance penetration in India, increasing spending personal, inadequate financial protection for adverse health events, and increased awareness and affordability of products enables it to create innovative products and provide excellent customer service. improve its distribution network by focusing on BANCA and digital channels, improving the loss ratio, optimizing OPEX and continuing to introduce innovative products to improve its profitability.However, investors must be aware of the competitive nature of the industry and being in a single-line business, the business is subject to black swan events such as the Covid-19 pandemic.”
Punishes Patni went on to add that the company’s main issue was priced high and that high loss ratios during the pandemic had badly affected the company, resulting in less investor interest. “Nevertheless, the correction provides a great opportunity to buy on a long-term downside and we expect the company to turn profitable in the years to come,” Patni concluded.
Expecting further selling of this stock from Rakesh Jhunjhunwala’s portfolio, Ravi Singh, Vice President and Head of Research at Share India, said: “Star Health stock is continuously falling amid slowing business and weak market sentiment. Regarding the technical setup, the current developments in the counter suggest more short-term weaknesses.”
Share levels to buy shares of Star Health, Ravi Singhal, Vice President of GCL Securities, said: “As we can see the stock has been steadily falling since the IPO of its public offering. Earnings are also down after the decline phase of the pandemic. However, margins are also under pressure. Still, the stock looks weak; it has strong support nearby ₹450 levels. S0, you can buy between ₹455 to ₹475 hold stop loss around ₹419 for a long-term goal of ₹675 per share.”
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
