Why This Jhunjhunwala Backed Large Cap Stock Is Volatile Today Even As Profits Grew 35% In Q1

Shares of Star Health And Allied Insurance were trading lower in early trade on Monday as the company’s earnings for the quarter ended March missed street estimates.

What Happened: The company’s net profits for the April-June period surged up 35% to ₹287.9 crore as compared to the ₹213.2 crore profit it booked in the same quarter last year. Revenue from operations for the period stood at ₹3,293.7 crore, up around 13.5% from the year-ago period. Both the top line and bottom line missed Bloomberg estimates.

The company’s EBIT went 57% year-on-year to ₹17.78 crore. EBIT margin was at 6.9%. Earnings per share for the quarter stood at ₹11.9.

Reacting to the results, domestic brokerage firm ICICI Securities maintained its ‘buy’ rating for the stock with a price target of ₹800, indicating a 29% upside from the stock’s last closing price of ₹622.40.

Price Action: Star Health’s share price bounced back after falling close to 2% in early trade on Monday. The Jhunjhunwala-backed stock was up 0.55% to trade at ₹625.80, at the time of writing.

Read Next: This Large Cap Stock Declared A Buyback, But Shares Are Still Crumbling

Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

You have successfully subscribed.
Posted In: EarningsNewsRekha JhunjhunwalaStar Health And Allied Insurance Company