Star Health and Allied Insurance Co (NSE:STARHEALTH) Beneish M-Score: -3.56 (As of Jun. 30, 2026)


NSE:STARHEALTH Star Health and Allied Insurance Co Ltd NSE:STARHEALTH
77 GF Score
Price ₹584.75
GF Value ₹588.02
Valuation Fairly Valued
! 4 Warning Signs
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What is Star Health and Allied Insurance Co Beneish M-Score?

Star Health and Allied Insurance Co NSE:STARHEALTH +1.33% 77 Beneish M-Score is -3.56 as of Jun. 30, 2026. GuruFocus rates NSE:STARHEALTH with a GF Score™ of 77/100 and a GF Value™ of ₹588.02 (Fairly Valued). The stock has 4 warning signs investors should review. Among 402 Insurance companies, Star Health and Allied Insurance Co ranks better than 92.29% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Star Health and Allied Insurance Co's Beneish M-Score or its related term are showing as below:

NSE:STARHEALTH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56   Med: -2.82   Max: -2.38
Current: -3.56

During the past 8 years, the highest Beneish M-Score of Star Health and Allied Insurance Co was -2.38. The lowest was -3.56. And the median was -2.82.

NSE:STARHEALTH
77GF Score
Star Health and Allied Insurance Co Ltd NSE:STARHEALTH
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Star Health and Allied Insurance Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Star Health and Allied Insurance Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0+0.528 * 1+0.404 * 0.9987+0.892 * 1.1071+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2785+4.679 * -0.054749-0.327 * 0.8637
=-3.56

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹0 Mil.
Revenue was ₹178,260 Mil.
Gross Profit was ₹178,260 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹240,638 Mil.
Property, Plant and Equipment(Net PPE) was ₹1,803 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹0 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,908 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹4,700 Mil.
Net Income was ₹5,570 Mil.
Gross Profit was ₹10 Mil.
Cash Flow from Operations was ₹18,734 Mil.
 Total Receivables was ₹4,652 Mil.
Revenue was ₹161,021 Mil.
Gross Profit was ₹161,021 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹207,846 Mil.
Property, Plant and Equipment(Net PPE) was ₹1,288 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹715 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,055 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹4,700 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 178260) / (4651.9 / 161020.6)
=0 / 0.02889
=0

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(161020.6 / 161020.6) / (178260 / 178260)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 1802.7) / 240637.7) / (1 - (0 + 1288.2) / 207846.2)
=0.992509 / 0.993802
=0.9987

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=178260 / 161020.6
=1.1071

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(714.8 / (714.8 + 1288.2)) / (0 / (0 + 1802.7))
=0.356865 / 0
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2908.1 / 178260) / (2054.7 / 161020.6)
=0.016314 / 0.01276
=1.2785

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4700 + 0) / 240637.7) / ((4700 + 0) / 207846.2)
=0.019531 / 0.022613
=0.8637

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(5569.8 - 10.1 - 18734.4) / 240637.7
=-0.054749

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Star Health and Allied Insurance Co has a M-score of -3.56 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -3.56 mean?
Star Health and Allied Insurance Co (NSE:STARHEALTH) has a Beneish M-Score of -3.56 as of Jun. 30, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Star Health and Allied Insurance Co and its competitors. According to the industry distribution chart, Star Health and Allied Insurance Co ranks #31 out of 402 companies in the Insurance industry, placing it in the top 7.7%.
Is Star Health and Allied Insurance Co's Beneish M-Score too high?
Star Health and Allied Insurance Co's current Beneish M-Score is -3.56. Based on the distribution chart, Star Health and Allied Insurance Co ranks #31 out of 402 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Star Health and Allied Insurance Co has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Star Health and Allied Insurance Co's Beneish M-Score compare to AFL and MET?
According to the Insurance industry distribution chart, Star Health and Allied Insurance Co ranks #31 out of 402 companies for Beneish M-Score. This places Star Health and Allied Insurance Co in the top 8% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Star Health and Allied Insurance Co and its competitors. Star Health and Allied Insurance Co's current Beneish M-Score is -3.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Health and Allied Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Star Health and Allied Insurance Co (NSE:STARHEALTH) is currently considered Fairly Valued. The stock's GF Value™ is ₹588.02, compared to a current price of ₹584.75 — trading 0.6% below its estimated fair value. The current Beneish M-Score is -3.56. Star Health and Allied Insurance Co's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Star Health and Allied Insurance Co (NSE:STARHEALTH), the current Beneish M-Score is -3.56 as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Star Health and Allied Insurance Co (NSE:STARHEALTH) Overvalued in 2026?

Based on GuruFocus' analysis, Star Health and Allied Insurance Co stock appears to be undervalued. The current stock price of ₹584.75 is trading 0.6% below its estimated GF Value™ of ₹588.02. GuruFocus considers Star Health and Allied Insurance Co to be Fairly Valued.

Key valuation signals for NSE:STARHEALTH:

  • Beneish M-Score: -3.56
  • GF Value™: ₹588.02 vs. price of ₹584.75 (0.6% below fair value)
  • GF Score™: 77/100 with 4 warning signs

No single metric tells the full story. See the NSE:STARHEALTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Star Health and Allied Insurance Co Business Description

Other Exchanges 543412:India
Address Dr. Radha Krishnan Salai, No. 148, Acropolis, Mylapore, Chennai, TN, IND, 600004
Star Health and Allied Insurance Co Ltd operates a non-life insurance business in India. It focuses on the retail health and group health segments. The company distributes policies through individual agents and also includes corporate agent banks and other corporate agents. It offers various types of insurance plans such as health, accidental, travel, corporate, and others. The operating segments of the company are based on the various types of insurance and include Fire, Marine Cargo, Marine Hull, Aviation, Motor, Workmen Compensation, Engineering, Public Product Liability, Personal Accident, Travel, and Health Insurance. The majority of its revenue is generated from its Health insurance products.
77GF Score

Get the complete analysis for NSE:STARHEALTH

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹584.75
Price
₹588.02
GF Value