ICICI Securities has shared its view on Niva Bupa Health Insurance, recommending a ‘Buy’ rating with a target price of ₹90. This puts the stock on the radar for many investors, especially since the current price is around ₹76 as of April 16, 2025. So what makes Niva Bupa stand out? Let’s break it down.
What Does Niva Bupa Do?
Niva Bupa is a standalone health insurance company (SAHI), fully focused on retail health plans. Their main offerings include individual and family health covers, critical illness, accident protection, and travel insurance. It’s a joint venture – Bupa holds a major 63% stake, while the remaining is with Indian promoters.
In short, they’re fully into the health insurance space – not distracted by life or motor insurance – just healthcare-focused.
Strong Growth Numbers
Niva Bupa has shown solid numbers over the last few years. Their premium income has grown at a fast pace – nearly 40% CAGR from FY20 to FY25. That’s impressive in a competitive market.
ICICI Securities expects profits to grow even faster in the coming years. They’re projecting a 53% annual jump in profits from FY25 to FY27. The key driver here is scale – as the company grows, its cost per policy reduces, and profitability improves.
What’s Driving This Growth?
- Retail Focus: They’re mainly into retail health plans – where margins are better.
- Better Pricing: They’ve done premium hikes recently, which helps improve their loss ratios.
- Distribution: Strong presence across digital channels, agents, and bancassurance.
Niva Bupa is not trying to do everything. They’re playing one game – retail health insurance – and they’re playing it well.
ICICI Securities View
ICICI Securities believes Niva Bupa is entering a strong phase of growth. That’s why they’ve valued the stock at 35x its estimated FY27 earnings – and arrived at a ₹90 target.
Their view: the company is profitable now, has strong momentum, and is positioned to benefit from India’s rising healthcare needs.
Should You Watch This Stock?
Definitely. In a time when healthcare awareness is rising and insurance penetration is still low in India, companies like Niva Bupa have a lot of headroom to grow.
This might be a good stock to keep on your long-term watchlist, especially if you’re bullish on the health insurance sector.
Disclaimer: This article is for informational purposes only. Please consult a SEBI-registered advisor before making any investment decisions.