Niva Bupa Health Insurance Company Ltd.
NSE: NIVABUPANiva Bupa Health Insurance Company Ltd.: A 30-second snapshot
Niva Bupa Health Insurance (NIVABUPA) reported 27.4% Gross Written Premium growth and an 80.4% PAT surge in FY26, yet the underlying ROE of 7.96% — the lowest in its tracked peer group — and a profit margin of 3.66% reflect a business still in the profitability maturation phase. At a trailing PE of 112.68 against a peer median near 29, the market is pricing in a significant earnings-growth trajectory. The stock trades at ₹79.83, marginally above its 200-DMA of ₹77.67, and is down 6.16% over the past year.
P/E
112.7
Forward P/E
32.5
ROE
+8.0%
Debt / Equity
7.30
Profit Margin
+3.7%
Div. Yield
—
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
53/100
News
7 headlines · 6 positive · 0 negative
Buy Niva Bupa Ltd for the Target Rs.97 by Motilal Oswal Financial Services Ltd - Investment Guru
Investment Guru
NIVABUPA: FY 2026 saw 27.4% GWP growth, 80% profit rise, and improved cost ratios, with strong retail gains - TradingView
TradingView
NIVABUPA: 27.4% GWP growth, 80% profit surge, and improved efficiency drive robust performance - TradingView
TradingView
NIVABUPA: Strong premium growth, robust solvency, and full IPO utilization marked FY26 performance - TradingView
TradingView
NIVABUPA: GWP up 27.4% YoY to ₹9,432.9 crore; PAT surged 80.4% to ₹366 crore; Retail Health share at 10.1% - TradingView
TradingView
Recent context
- ·FY26 results reported an 80.4% PAT increase to ₹366 crore and a 27.4% GWP rise, with improved cost ratios and full utilisation of IPO proceeds cited across multiple coverage reports (TradingView, May 8 2026).
- ·Retail Health segment market share reached 10.1%, indicating continued penetration gains in the direct-to-consumer health insurance channel.
- ·Motilal Oswal published a price target of ₹97 as of May 14 2026; the stock closed at ₹79.83, representing a 21.5% gap to that third-party figure — context for the 10-analyst mean rating of 1.70 on a 1–5 scale (lower = more constructive).
Strengths
- +FY26 GWP grew 27.4% YoY to ₹9,432.9 crore, demonstrating sustained premium volume expansion in the retail health insurance segment.
- +5-year earnings growth of 167.8% and revenue growth of 65.8% indicate a business scaling meaningfully from a low base.
- +FCF was positive in 4 of the tracked years (fcfPositiveYears = 4), suggesting the operating model generates cash despite thin reported margins.
- +Forward PE of 32.51 is a steep discount to the trailing PE of 112.68, implying analyst consensus models a significant step-up in near-term earnings.
Weaknesses
- −ROE of 7.96% has never exceeded 15% in any tracked year, placing it last among the 6-stock peer set including AXISBANK (13.15%), HDFCBANK (13.82%), and BAJFINANCE (17.91%).
- −Debt-to-equity of 7.30 is the highest in the peer group; for a health insurer operating under IRDAI solvency norms, this leverage level requires ongoing capital monitoring.
- −Profit margin of 3.66% remains thin; the consistency score of 45 and quality score of 41 (4th of 6 peers) reflect limited financial quality breadth relative to sector peers.
- −Trailing PE of 112.68 embeds growth expectations that leave limited room for earnings misses; any deterioration in claims ratios or premium growth could compress the valuation sharply.
Open questions
- ?At what level of sustained ROE and profit margin improvement would the current trailing PE of 112.68 appear proportionate relative to sector peers trading at 14–30x?
- ?Does the D/E ratio of 7.30 reflect structural leverage inherent to health insurance float, or does it indicate a balance-sheet risk not fully captured by IRDAI solvency-ratio disclosures?
- ?How durable is the 27.4% GWP growth — does it reflect market-share gain in retail health or industry-wide premium rate increases that may moderate?
- ?If the earnings trajectory implied by the forward PE of 32.51 does not materialise within 2–3 years, what would the re-rating path look like relative to the peer median PE of ~29?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| NIVABUPA | Niva Bupa Health Insurance Company Ltd.You're viewing | 112.7 | +8.0% | 41 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹79.83
SMA 50
₹75.16
SMA 200
₹77.67
RSI (14)
54.0 (neutral)
From 52w high
-16.1%
1Y return
-6.2%
3M return
+2.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 7.30 stands well above sector peers for a health insurer; the elevated financial leverage warrants scrutiny of solvency margins and regulatory capital adequacy ratios.
- highROE of 7.96% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0) and profit margin is 3.66%, indicating that 5-year revenue growth of 65.8% and 5-year earnings growth of 167.8% have not yet produced durable equity returns at scale.
- mediumTrailing PE of 112.68 ranks 6th of 6 peers and is roughly 4x the sector peer median (~29); forward PE of 32.51 implies heavy earnings-growth expectations are embedded in the current price.
- mediumQuality score of 41 ranks 4th of 6 and ROE of 7.96% ranks last among peers including AXISBANK (13.15%), HDFCBANK (13.82%), and BAJFINANCE (17.91%).
Cross-section contradictions
- 5-year earnings growth of 167.8% and revenue growth of 65.8% are both high, yet ROE has never exceeded 15% in any tracked year and stands at 7.96% — top-line expansion has not compounded into proportionate equity returns.
- Stock is above both the 50-DMA (₹75.16) and 200-DMA (₹77.67) with RSI at 53.97 (neutral), yet the 1-year price change is -6.16% — price momentum has underperformed even as near-term technicals are marginally constructive.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days