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Potential Upside For Niva Bupa Health Insurance Company Limited (NSE:NIVABUPA) Not Without Risk

Simply Wall St · 3d ago

It's not a stretch to say that Niva Bupa Health Insurance Company Limited's (NSE:NIVABUPA) price-to-sales (or "P/S") ratio of 2.1x right now seems quite "middle-of-the-road" for companies in the Insurance industry in India, where the median P/S ratio is around 1.7x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

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See our latest analysis for Niva Bupa Health Insurance

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NSEI:NIVABUPA Price to Sales Ratio vs Industry December 17th 2025

How Has Niva Bupa Health Insurance Performed Recently?

Niva Bupa Health Insurance certainly has been doing a good job lately as its revenue growth has been positive while most other companies have been seeing their revenue go backwards. One possibility is that the P/S ratio is moderate because investors think the company's revenue will be less resilient moving forward. Those who are bullish on Niva Bupa Health Insurance will be hoping that this isn't the case, so that they can pick up the stock at a slightly lower valuation.

Want the full picture on analyst estimates for the company? Then our free report on Niva Bupa Health Insurance will help you uncover what's on the horizon.

How Is Niva Bupa Health Insurance's Revenue Growth Trending?

Niva Bupa Health Insurance's P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

Taking a look back first, we see that the company grew revenue by an impressive 23% last year. Pleasingly, revenue has also lifted 153% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenue over that time.

Turning to the outlook, the next three years should generate growth of 20% per annum as estimated by the ten analysts watching the company. Meanwhile, the rest of the industry is forecast to only expand by 8.9% per annum, which is noticeably less attractive.

With this information, we find it interesting that Niva Bupa Health Insurance is trading at a fairly similar P/S compared to the industry. Apparently some shareholders are skeptical of the forecasts and have been accepting lower selling prices.

The Key Takeaway

Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

We've established that Niva Bupa Health Insurance currently trades on a lower than expected P/S since its forecasted revenue growth is higher than the wider industry. Perhaps uncertainty in the revenue forecasts are what's keeping the P/S ratio consistent with the rest of the industry. However, if you agree with the analysts' forecasts, you may be able to pick up the stock at an attractive price.

And what about other risks? Every company has them, and we've spotted 1 warning sign for Niva Bupa Health Insurance you should know about.

If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.