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Star Health and Allied Insurance Company Limited (STARHEALTH) Fair Value & Analysis

Financial Services · IN · Market cap ₹341B (≈ $3.6B) · ISIN INE575P01011

What is Star Health and Allied Insurance Company Limited really worth?

SH Star Health and Allied Insurance Company Limited STARHEALTH · NSE
Price₹557.35
Fair Value₹141.30
Upside−74.7%
Quality56/100

A solid business, but trading 294% above our fair value of ₹141.30.

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Strengths

Healthy Growth (revenue 5y +25.3 %/yr)
Low debt · generates free cash flow

Risks

!Thin margins · 3.1% net margin
!Trails peers (5/14)
!Narrow moat 27/100
!Weak on past: 29 out of 100
Evidence: High Range ₹105.97 – ₹176.62

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from ₹123.06 to ₹141.30 (+14.8%) since Aug 8, 2026. Share price −5.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹176.62). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

₹906.85 ₹343.10 Fair Value ₹141.30 Dec 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

57‑month range ₹343.10 – ₹906.85 · fair‑value band ₹105.97 – ₹176.62 · the ₹557.35 price screens above the ₹141.30 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Star Health and Allied Insurance Company Limited (STARHEALTH) currently trades at ₹557.35, while our model-based Fair Value estimate is ₹141.30, implying the stock looks roughly 294.5% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ₹123.06 per share, and 0 of the 6 models we run sit above the ₹557.35 price. Bear case: the Asset-Based group reads lowest at ₹85.98, and 6 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Star Health and Allied Insurance Company Limited generated revenue of ₹178B at a net margin of 3.1%. Revenue grew 13.8% year over year. It earns a return on equity of 7.3%. The balance sheet holds a net cash position of ₹9.7B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹105.97 (bear case) to ₹176.62 (bull case); at ₹557.35, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 8% below its 52-week high and 34% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −29% fair-value upside, at −75%, STARHEALTH screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹4.10 per share, which is 2.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹1.30 to ₹160.92). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ₹106.15 ₹112.86 ₹126.60 76
DDM Multi-Stage ₹0.7300 ₹1.30 ₹1.65 66
Gordon GGM ₹0.7300 ₹1.59 ₹2.67 65
All 6 models by family
Dividend Discount
Gordon GGM ₹0.7300 ₹1.59 ₹2.67 65
DDM Multi-Stage ₹0.7300 ₹1.30 ₹1.65 66
Multiples
P/E Multiple ₹92.29 ₹123.06 ₹153.82 63
P/B Multiple ₹120.69 ₹160.92 ₹201.15 55
Asset-Based
NCAV (Graham) ₹64.17 ₹85.98 ₹128.33 54
Economic Profit
Residual Income best evidence ₹106.15 ₹112.86 ₹126.60 76

Widest divergence: Multiples (₹123.06) versus Dividend Discount (₹1.30). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 58.9
P/S ratio 1.84 P/E × margin
EPS (TTM) ₹9.47 price ÷ EPS = P/E 58.9
Dividend yield 0.0% payout 0.8%
Net margin 3.1% FY2026
Return on equity 7.3% TTM
More key figures
Profitability
Return on assets (EBIT) 1.9% avg 5y
Operating margin 3.3% TTM
Growth
Revenue (TTM) ₹178B TTM
Revenue growth (YoY) +13.8% 3y avg +13.8%
EPS growth (YoY) +188%
Balance sheet & cash flow
Free cash flow ₹17.5B FY2026
Net cash ₹9.7B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 58 · Market factors (momentum, volatility) 73

Profitability 38
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 68
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Star Health and Allied Insurance Company Limited provides health insurance products in India. It offers retail health insurance products for individuals, families, children, senior citizens, and persons with pre-existing medical conditions; group health insurance products for employer/employee and non-employer/employee groups, including small-to-medium …

Full company description

Star Health and Allied Insurance Company Limited provides health insurance products in India. It offers retail health insurance products for individuals, families, children, senior citizens, and persons with pre-existing medical conditions; group health insurance products for employer/employee and non-employer/employee groups, including small-to-medium enterprises; and personal accident and travel insurance products. The company also provides star women care insurance policy that provides surrogacy and oocyte donor covers; and star special care product that covers children diagnosed with autism and for outpatient specialized treatments. In addition, it offers star health assure insurance policy, star cancer care platinum insurance policy, senior citizens health insurance policy, and star cardiac care insurance policy " platinum, as well as star group OPD care insurance product. The company offers its products through web aggregators, digital channels, agency channels, corporate agents, brokers, point of salesperson, insurance marketing firms, and various other channels. Star Health and Allied Insurance Company was incorporated in 2005 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Star Health and Allied Insurance Company Limited reported revenue of ₹178B in FY2026 versus ₹106B in FY2022, a compound +13.9%/yr. Reported net income was ₹5.6B in FY2026.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹178B
Latest YoY
+8.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+25.3%
Avg. revenue growth/yr (13Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+31.1%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+11.6% (11.6 + 0.0)
Revenue +13.9%/yr
FY22 ₹106B
FY23 ₹121B
FY24 ₹144B
FY25 ₹165B
FY26 ₹178B
Net income
FY22 −₹10.4B
FY23 ₹6.2B
FY24 ₹8.5B
FY25 ₹6.5B
FY26 ₹5.6B

STARHEALTH screens 294% overvalued. Compare with China Life Insurance Company →

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Cite: Fair Value Calculator (2026). "Star Health and Allied Insurance Company Limited Fair Value". https://www.fairvalue-calculator.com/stock/STARHEALTH

Peer Group

Insurance - Life · 96 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside −75% · Bottom 25%
Return on equity (TTM) 7% · Below median
Return on assets 2% · Top 25%
Net margin (TTM) 3% · Below median
Operating margin (TTM) 3% · Bottom 25%
Revenue growth 14% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.06× · Lower than 75% of peers

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 58.9× · Pricier than 75% of peers
P/B 4.52× · Pricier than 75% of peers
P/S (TTM) 1.92× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than median
EV/EBITDA 42.3× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 18
FUTURE69 · sector 43
PAST29 · sector 43
HEALTH97 · sector 84
DIVIDEND0 · sector 54

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥37.03 ¥49.98 +35%
Ping An Insurance (Group) Company 601318 ¥55.82 ¥84.72 +52%
AIA Group 1299 HK$73.00 HK$33.57 −54%
Manulife Financial Corporation MFC C$59.80 C$38.80 −35%
Aflac Incorporated AFL $116.52 $74.34 −36%
Great-West Lifeco Inc GWO C$90.25 C$39.53 −56%
MetLife, Inc MET $96.51 $68.27 −29%
Life Insurance Corporation LICI ₹412.15 ₹392.93 −5%
China Pacific Insurance (Group) Co 601601 ¥30.20 ¥57.51 +90%
Samsung Life Insurance Co 032830 301,000 KRW 191,293 KRW −36%

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Frequently asked questions

Is Star Health and Allied Insurance Company Limited (STARHEALTH) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹141.30 versus a price of ₹557.35, about −75% upside (overvalued).
What is the fair value of STARHEALTH?
Our model-based fair value for Star Health and Allied Insurance Company Limited is ₹141.30 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹557.35.
What is the quality score of STARHEALTH?
Star Health and Allied Insurance Company Limited has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Star Health and Allied Insurance Company Limited (STARHEALTH)?
Star Health and Allied Insurance Company Limited reported trailing-twelve-month revenue of about ₹178B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of STARHEALTH?
The net profit margin of Star Health and Allied Insurance Company Limited is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.
Does Star Health and Allied Insurance Company Limited pay a dividend?
Star Health and Allied Insurance Company Limited currently shows a dividend yield of about 0.01% relative to its recent price (as of Aug 13, 2026).
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