Shares of Niva Bupa Health Insurance Company Ltd surged over 7% intraday on April 23, hitting an intraday high of ₹86.46 after Motilal Oswal initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹100, citing strong growth momentum and a dominant position in the retail health segment.
At 11:20 AM IST, Niva Bupa was trading at ₹83.20, up ₹5.58 or 7.19% from the previous close of ₹77.62. The company’s market capitalization now stands at ₹15,212 crore, with a P/E ratio of 92.47 and an average volume of over 6.77 lakh shares.
Why the rally?
Motilal Oswal’s report highlights:
- Niva Bupa delivered a CAGR of 34% in gross written premiums (GWP) during FY22–FY25.
- Expected to clock a 25% CAGR in GWP between FY25 and FY28.
- Strong growth in retail health segment, which contributes 68% of business, with claim settlement ratio of 90%.
- Innovations and AI-driven claims management have enhanced operational efficiency.
- Target price of ₹100 is based on 40x FY27E P/E on IFRS PAT.
Motilal Oswal praised Niva’s position among standalone health insurers (SAHIs), especially due to its consistent innovation, fast AI-powered claim settlement system, and robust retail product pipeline.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
