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.
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