Shares of Niva Bupa Health Insurance Company Ltd tumbled nearly 6% on Thursday, August 1, to ₹82.35, reacting to cautious commentary from brokerage firm Morgan Stanley. The stock was trading at ₹87.85 before the downgrade impact set in.
Morgan Stanley has maintained an “equal-weight” rating on the stock and assigned a target price of ₹76 per share, implying limited upside potential from current levels. The brokerage cited expanding loss ratios as a concern, driven by prudent reserving and a changing business mix, which it says reflects evolving underwriting dynamics.
Additionally, the company’s expense of management (EOM) was reported to be 10 basis points above the regulatory threshold — raising red flags over cost discipline. That said, Niva Bupa’s management remains optimistic, reiterating its commitment to meeting FY26 EOM targets and affirming that corrective actions are already in motion.
Morgan Stanley’s report reflects a mixed view — acknowledging operational headwinds but also crediting management’s long-term focus on profitability and regulatory compliance.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a certified financial advisor before making any investment decisions.
