• Care Health is going to come with IPO this year.

    24 June at 10:59

Today results are out for Care Health which shows topline of 2,560 cr only. Their PAT has although jumped by 55.7% from 66 cr to 102 cr. 


Star Health clocks 10,000 cr Gross Written Premium and is coming with 3 billion $ IPO which means company is being valued at 22,500 cr giving a 2.25x multiple of Revenue to MarketCap. Link for Star Health IPo can be searched on Google. 


Star and Care Health are 2 Health insurance companies in India which comes under SAHI (Standalone Health Insurance) and do well in Agency model and have best ROE and Growth. 


Coming back to Care health, it has 84.1 cr shares. With multiple of 2.5x, company is going to have valulation of ~6,400 cr and per share price comes close to ₹75/share - ₹80/share.  Kedara capital infused 567 cr at total valuation ~3,200 cr Rs. last year in June,2020.


We feel it is time to book profits in Care Health with counter now trading above ~200/share which gives them a multiple of >6x. 


Remember, Life Insurance companies gets multiple of 2.5x whereas General Insurance companies have multiple of 4.5x - 5x. 


Health Insurance will be tagged more to  life than general non-life segment. 


Always, book profits when a ₹10 thing becomes ₹30 - ₹40 in market.


Contact us to book now: +91 7065560002