HDFC ERGO Health Insurance Multibagger Analysis 2021

This article can explore the possibility of HDFC ERGO Health Insurance Multibagger Analysis 2021 Stock based on Value Investing principles. HDFC ERGO General Insurance Company Ltd. is a joint endeavor between HDFC Ltd. India’s head Housing Finance Institution and ERGO International AG the essential protection substance of Munich Re Group. The Company offers a total scope of general protection items running from Motor, Health, Travel, Home, and Personal Accident in the retail space and redid items like Property, Marine, and Liability Insurance in the corporate space. HDFC share holds 51%, and ERGO the other 49%. The firm works in 101 Indian urban areas with more than 127 branches and 2,000 or more staff individuals.

CMPRs. 691

About HDFC ERGO Health Insurance

HDFC ERGO plan Gross Written Premium developed by 17.8% during the year, from 2018 7,401 crores to 8,722 crores. This was quicker than the business development of 12.9%. Our aligned development procedure across non-crop sections assisted us with accomplishing a 27.4% development in HDFC ERGO non-harvest to 6,622 crore versus 13.1% development for the business. In accordance with our portfolio methodology, our yield portfolio stayed level at 2,099 crore. Subsequent to accomplishing a two-digit joined proportion in FY18, our consolidated proportion improved further this year.

HDFC ERGO cost proportion was 22.4% and misfortune proportion was 76.3%, bringing about an in general consolidated proportion of 98.7%. Subsequently, the Company accomplished benefit before duty of 636 crore when contrasted with 513 crore a year ago, addressing a 23.9% development.

By virtue of the defaults looked by the Company on its openness to the IL&FS bunch and considering the ensuing improvements subsequently, the Company took a traditionalist view and switched the gathered revenue and made arrangement for 100% of its important openness and value openness to the IL&FS bunch, adding up to crore. Along these lines, the Company accomplished a benefit after duty of 383 crore for the year. We announced a break profit of 22.5% for FY19.

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Highlights of the FY2019-20

a) Third biggest General Insurance Company in a private area. The absolute GWP remains at ~9400 Crores.

b) Overall piece of the pie of 6.2% for Fincal Year 2019-20 considering entire year business of HDFC ERGO Health Insurance

d) Solvency proportion of 1.78x IRDAI required dissolvability proportion of 1.50x.

e) PAN-India presence across 203 branches and an affectionate group of 7,800 experts.

f) Issued more than 1 Crores arrangements and adjusted more than 1.5 million cases in FY20.

Highlights of the FY2018-19

a) It is the third biggest General Insurance organization in the private area with Gross Written Premium 8722 Cr for FY19 and 5.1% offers as on March 2019.

b) Issued more than 8.5 Million Policy during the FY19.

c) The dissolvability proportion of 1.75x as which is well over the 1.5x prerequisite of IRD

Warren Buffet, Value & Growth Checklist

Capitalization₹ 139,576 Cr.
Sales Increasing past 3 YearsYes, 1000%bce05 green e1587451073732
Profit Increasing past 3 Years -1.01 % 2d260 red
Durable Competitive Advantage Yes bce05 green e1587451073732
PE Ratio103.13
PB Ratio307 bce05 green e1587451073732
Debt Equity Ratio605.8421
Intrinsic Value Discount90% bce05 green e1587451073732
Promoter Holding & Increase62%, Increased 24% bce05 green e1587451073732
Multibagger Returns300-500% 5 Year bce05 green e1587451073732


  •  Tax breaks
  • No-claims Bonus
  • Reestablish or Regain Benefit
  • Top-ups and Super Top-ups


  • Premium Increases with Age
  • Waiting Period for Existing Health Problems
  •  Co-Pay Clause


As per the R&D, the company is having Multibagger Potentials. However, this is not a Multibagger Recommendation. You should get paid Subscription to get the Real 500% Multibaggers. 3 Multibaggers immediately after payment.

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