Morgan Stanley has reiterated its equal-weight rating on Niva Bupa, assigning a target price of ₹76 per share. The stock was trading at ₹87.85 at the time of the report, indicating the brokerage sees limited upside from current levels.
According to Morgan Stanley, loss ratios expanded during the period, primarily due to prudent reserving practices. The change in business mix also contributed to the uptick in loss ratios, reflecting evolving underwriting dynamics within the portfolio.
Additionally, the company’s expense of management (EOM) stood 10 basis points above the regulatory cap, raising short-term cost concerns. However, management remains confident of achieving the FY26 EOM target, indicating that corrective measures are already underway.
Morgan Stanley’s stance reflects a balanced outlook, noting both operational challenges and the management’s commitment to long-term compliance and profitability goals.
Disclaimer: This article is based on Morgan Stanley’s stock research report. The views and target price mentioned are theirs. This does not constitute a recommendation to buy or sell any stock. Please consult a registered financial advisor before making any investment decisions.
