Star Health IPO: How good is it?

In our story, Star Health IPO: Information analysis, we have shared the key details of the IPO, along with important information about the company. Here we will answer some questions about Star Health and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? No, the company incurred a loss of Rs 826 crore in FY21. 2) Will the company be able to scale up its business? Yes, the company has been opening new branches all over the country and also employing new agents, which resulted in an increase in net premium earned. As the company aims to open more offices, it will be able to scale up its business. 3) Does the company have recognisable brands truly valued by its customers? Yes. Star Health is India's leading private health insurer in the retail market where brand recognition is of utmost importance. It has maintained this leadership position in the last three fiscal years. 4) Does the company have high repeat customer usage? Yes, the company is able to retain its customer, with its renewal premium ratio for FY21 pegged at 97.9 per cent. 5) Does the company have a credible moat? No, even though the company is a leader, it does not offer anything unique that others cannot offer. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes, its operations are based only in India and the company has adhered to all the provisions related to regulations. 7) Is the business of the company immune from easy replication by new players? Yes. The insurance industry