The health insurer Niva Bupa’s share price rallied 17% in the last one month on the National Stock Exchange. The company’s shares closed 7.7% higher on May 08, while jumping 15% during the intra-day trade as its net profit in Q4 earnings rose 31.2% year-on-year to Rs 206 crore, compared with Rs 157 crore in Q4FY24.
However, Niva Bupa’s share price declined 1.86% to trade at Rs 85.68 in today’s weak market, owing to geopolitical tension between India and Pakistan.
Also, the insurer’s gross premiums written grew 18.2% YoY for the fourth quarter of FY25, reaching to Rs 2,078.7 crore, as against Rs 1,759.4 crore in the same period previous year. Niva Bupa’s net premium written increased by 21% YoY in Q4FY25 to Rs 1,672 crore versus Rs 1,381.9 crore in Q4FY24.
Although the company’s underwriting profit declined 12.2% to Rs 57.6 crore, compared with Rs 65.6 crore. The concerning point for the investors could be that the operating profit dropped sharply by 43.1% to Rs 94.9 crore from Rs 166.8 crore a year ago. The company’s solvency ratio remained steady at 3.03% quarter-on-quarter basis.
Motilal Oswal on Niva Bupa
The domestic brokerage house has a ‘Buy’ rating on the stock with a target price of Rs 100 on the stock. This implies 17% upside from current levels. It believes the insurer is well-positioned to harness growth opportunities with a strategic global partner, a growing customer base, and innovative product offerings. The company’s diversified channel mix will ensure improved scalability as it moves toward geographic expansion. Although measures taken to mitigate claim inflation will continue to aid loss ratios, meanwhile while operational efficiency will lead to an improved expense ratio going forward.
Niva Bupa stock performance
The share price of Niva Bupa has risen 5.8% in the previous five trading sessions. The stock has given a return of 17% in the last six months and 16% in the past one year. Niva Bupa’s share price has increased by almost 4% year to date.