Motilal Oswal believes IRDAI draft is positive for this insurance stock, sees 31% upside- Check target price, rationale
Niva Bupa Health Insurance shares rose 1.63% after IRDAI proposed distribution regulation reforms. Brokerage Motilal Oswal supports a bullish view, forecasting a 31% upside.
Shares of Niva Bupa Health Insurance Company Limited ended nearly 1.63% higher on Friday, staging recovery from the previous trading session’s steep decline after the Insurance Regulatory and Development Authority of India (IRDAI) proposed sweeping reforms for the insurance industry.
The IRDAI draft norms linked to distribution are positive over the medium term, and may have minor impact on near-term growth, the company said during its conference call on Thursday. Brokerage Motilal Oswal echoed the view and maintained its bullish stance on the stock, seeing a potential 31% upside on Niva Bupa Health Insurance.
The insurance company believed that the measures in the draft would be a net positive for the company. However, the reassessment of product constructs and distribution architectures could put pressure on growth, as per Motilal Oswal report.
Lower commissions, mentioned under the IRDAI draft paper, would hold prices flat for longer as it did after the GST exemption. The company is already complying with the 20% first year and 10% renewal cap. However, the company believes that its volumes will drop in credit-linked business. “Management treats this as a pipeline impact to be mitigated, not fully quantified yet.”
Motilal Oswal maintained a ‘Buy’ rating for the stock with a target price of ₹ 100 per share. “We maintain our estimates and retain BUY rating with a one-year TP of INR100.”
The stock closed 1.63% higher at ₹ 77.38 per share on BSE with a market capitalisation of ₹ 14,312.55 crore on Friday. THe stock touched an intraday high of ₹ 78 per share and an intraday low of ₹ 75.70 per share.
Its share price value has declined 8.75% in three months. It has surged close to 8.51% in six months and around 3.15% in 2026 so far. The stock touched its 52-week high of ₹ 91.20 per share on July 31, 2026. Its share price value dipped to its 52-week low of ₹ 67.50 per share on March 24, 2026.
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