Morgan Stanley has initiated coverage on Niva Bupa with an ‘Equal-Weight’ rating, setting a target price of ₹88, indicating a potential upside of approximately 16.2% from its current market price of ₹75.70.
The brokerage highlighted Niva Bupa’s strong franchise, positioning it as a key player to capitalize on the secular growth opportunities within India’s health insurance industry. It expects the company to achieve mid-teen IFRS ROE amidst stiff competition and improve its combined ratio from 98.8% in FY24 to 95.3% by FY29, driven by scale.
Morgan Stanley projects a 24% CAGR in gross direct premium income (GDPI) over FY24–29 but noted that the upside potential appears capped relative to overweight-rated stocks in the sector.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.