Niva Bupa Shares Soar 15% On Strong Q4; Can They Revisit 52-week High?

Shares of Niva Bupa Health Insurance Company Ltd climbed 15 per cent successful Thursday's waste and acquisition connected beardown group of March 4th results. Niva Bupa reported an net hit of 9 per cent, pinch its PAT rising 31 per cent YoY contempt nan effect of nan 1/n norm transition. On a like-for-like basis, nan claims ratio was mean astatine 52 per cent during nan quarter, driving a hit connected underwriting profits. A mates of brokerages suggested targets successful nan scope of Rs 85-100 connected nan antagonistic against a 52-week precocious of Rs 109.41 deed successful December past year.

"Niva Bupa besides clamped down connected expenses to thrust down nan EoM ratio to 37 per cent successful FY2025 from 39 per cent past year. The institution remains connected way to present beardown maturation and betterment successful profitability complete nan mean term," Kotak said while suggesting a adjacent worth of Rs 85 connected nan stock.

On Thursday, nan banal roseate a coagulated 15.12 per cent to breach this target. The scrip deed a precocious of Rs 93.33, earlier trading astatine Rs 92.10 apiece by 10.30 am. 

Following its quarterly results, MOFSL said Niva Bupa is well-positioned to harness maturation opportunities pinch a strategical world partner, a increasing customer base, and innovative merchandise offerings. The diversified transmission operation will guarantee improved scalability arsenic nan institution moves toward geographic description , it said adding that measures taken to mitigate declare ostentation will proceed to assistance nonaccomplishment ratios, while operational ratio will lead to an improved disbursal ratio going forward.

"Backed by a beardown capacity successful 4QFY25, we person upgraded our estimates nether IGAAP, chiefly connected disbursal ratio and somewhat higher growth. However, our IFRS estimates person broadly remained unchanged and we worth nan banal astatine 40x FY27E IFRS PAT to get astatine a adjacent worth of Rs 100. We reiterate our Buy rating," it said. 

Arihant Capital Markets said Niva Bupa reported beardown Q4FY25 growth, driven by strategical description successful unit and group wellness segments. 

Disciplined underwriting, improved claims management, and tech-led analytics supported sustained profitability, it said.

"Despite manufacture concerns complete declare rejections and infirmary negotiations, nan institution maintained a competitory declare colony ratio and expanded its distribution network. Looking ahead, it intends to standard preferred supplier networks, optimize costs, and deepen scope successful underserved markets," Arihant Capital Markets said.

Published on: May 8, 2025 10:34 AM IST