Skip to main content

Ownership Change Drives Up This Unlisted Stock 400% In 18 Months

 


If health insurers have been some of top beneficiaries of Covid-19 pandemic, then this company has been an out-and-out winner. Its shares have quadrupled in the unlisted space in last one-and-a-half year.

Care Health 
Insurance is the new avatar of Religare Health Insurance. Religare Enterprises NSE -0.77 % informed bourses earlier this month that it has changed the name of its health insurance subsidiary to Care Health Insurance. But the firm emerged as a star performer even before that.

Dealers of unlisted shares said the stock, which debuted at Rs 26-28 in early 2019, used to trade at Rs 35-40 at the start of 2020. They have since risen to Rs 100-105. They see even more upside.

Jasbir Singh of Meera Associates, a Pune-based firm that deals in unlisted shares in the unofficial market, said the name change was on the cards, as the firm's ownership changed in June 2020. "As the company decided to shun the name of previous promoters, this boosted sentiment. The new owners are trying to build a new brand image. However, it's too early to predict a change in management," he said,

Homegrown private equity fund Kedaara, through group entity Trishikur Ventures, acquired more than 72 per cent stake in the health insurer last month for Rs 567.31 crore, which also comprised primary capital infusion of Rs 300 crore. “Name of Religare Health Insurance Company Ltd, subsidiary of the company, has been changed to Care Health Insurance Ltd with effect from August 19, 2020,” Religare Enterprises told the bourses in a regulatory filing last month.

Religare Health Insurance offers products in the retail segment for critical illness, personal accident, top-up coverage, international travel insurance and maternity covers along with group health insurance and group personal accident insurance for corporates.

In FY18, the company posted a topline of Rs 782.85 crore and generated Rs 20.85 crore PAT. In FY19, it managed Rs 1,222.5 crore revenue and Rs 61.34 crore PAT.

Singh of Meera Associates is bullish on the stock, as awareness and demand for healthcare-related products are on the rise in the country. Other dealers, too, vouched for it. Laxmikant Kabra, Managing Partner, Plutus Capital Management, says Care (Religare Health) is a pure healthcare player, with a focused business, which is a big positive.

"Growing awareness about health insurance due to Covid-19 has been a boon for the company, with Kedaara entry providing an added advantage," he said. "Online sale of insurance via new-age aggregators will help revenue growth of the company."

Insurance as a sector has a very less penetration in India. However, the recent pandemic has put everyone on alarm, leading to robust sale of health policies.

Sandip Ginodia of Abishek Securities believes health insurance has a lot of steam left in it. Compared with developed markets, Indians do not spend much on insurance even when hospital bills are rising. "Treatment in private hospitals is a luxury now. One must need a decent health cover for it. Government hospitals have always been under scanner. However, investors must wait for a correction to enter the stock," he said.

 

 Sandip Ginodia , CEO

 

ALTIUS INVESTECH PVT LTD

 

We deal in over 60 unlisted companies with 15 years of experience 

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Comments

Popular posts from this blog

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

  JioMart , Reliance's online-to-offline commerce  platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went   live in 200 cities across India, is currently processing an average of  500,000 orders per day. " We can go even higher on peak days",  Jio Platforms CEO   Kiran Thomas  revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of  kiranas  and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials."  "Customers are transacting seamlessly on JioMart and the  conversational nature of the service  enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated that it will continue t

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p

Zomato, Swiggy score 1/10 on working conditions for their workers – ET Retail

Some of India's biggest startups have ranked near the bottom when it comes to  working conditions  for their gig  workers , according to a report released Wednesday. While  Swiggy ,  Zomato  and Uber India scored 1/10, Urban Company and Flipkart’s logistics arm EKart scored the highest 8/10 and 7/10, respectively, ‘ Fairwork India Ratings  2020: Labour Standards in the Platform Economy’  showed . The report assessed the companies on five principles: fair play, fair conditions, fair contracts, fair management, and fair representation. Deepinder Goyal, chief executive officer of Zomato Media Pvt. Ltd., acknowledged the ratings on Twitter. “Zomato ranked at the bottom of 2020 Fairwork India scores. We knew we had things to work on, but we didn’t know that there is so much room for improvement.” The company takes full responsibility and “will leave no stone unturned to perform better in the rankings next year,” he added. Zomato received a 4/10 in last year's report. According t