Stock to buy under 100: Brokerage firm Motilal Oswal has maintained a largely constructive stance on health insurer Niva Bupa’s stock, citing that the company is gaining market share in the under-penetrated retail health industry.
At 10:24 AM today, shares of Niva Bupa were trading at Rs 86.69, down 0.25 per cent from the previous close on the BSE.
Created with AI. Errors are possibleMOSL has maintained a Buy rating on Niva Bupa’s stock, with a target price of Rs 97.
– Growth without compromise.
– Gaining market share in the under-penetrated retail health industry.
– Building a multi-channel profitable growth engine.
– Thoughtful investment management supports earnings stability.
– Niva is entering the most attractive phase of the health insurance lifecycle, where scale, renewal accumulation, claims efficiency and operating leverage begin working simultaneously.
– Estimate a CAGR of 24%/28% in IFRS insurance revenue/PAT during FY26-28, with the CISR improving to 100.1% in FY28E.
Niva Bupa has reported a 67 per cent surge in net profit to Rs 345 crore during the March quarter.
The health insurer had earned a net profit of Rs 206 crore during the same period of 2024-25.
The total expenses during the period grew to Rs 1,795 crore from Rs 1,470 crore in the corresponding period a year ago.
Gross written premium increased to Rs 2,880 crore during the quarter under review compared to Rs 2,079 crore in the same period a year ago.
However, the solvency ratio declined to 2.49 as on March 31, 2026 from 3.03 at the end of the fourth quarter of the previous fiscal year.
It further said the board has approved the elevation of Ankur Kharbanda (currently designated & serving as executive director and chief business officer) to the position of executive director and deputy chief executive officer effective May 8 based on the recommendation of the nomination and remuneration committee.
Reflecting its focus on customer service and claims experience, the company reported a claim settlement ratio of 94.4 per cent for FY26, an improvement of 205 basis points over the previous year, Niva Bupa said in a statement.
The company continued to strengthen its position in the retail health segment, with market share improving to 10.1 per cent at the close of FY26, representing 76 basis points increase over FY25, it said.
“Our market share gains and improvement in claim settlement ratio reflect the trust customers place in us and our continued focus on delivering superior health insurance experiences,” the company’s MD and CEO Krishnan Ramachandran said.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
