Citi has maintained its “Buy” rating on Go Digit with a target price of ₹450, suggesting a potential upside of 32% from the current market price (CMP) of ₹342. The brokerage has opened a 90-day positive catalyst watch for the stock, anticipating improvements in growth and combined ratio. Citi sees promising momentum in motor premium growth and an uptick in direct premium collection at select OEM counters.
Additionally, the report notes a favorable base for group health insurance sales, supported by easing competitive pressures. The net incurred claims ratio is expected to improve on a year-over-year basis due to a lower group health claims ratio, following a pricing correction from Q3. Citi further emphasized that Go Digit’s earnings trajectory is robust, aided by higher investment yields, making it their preferred pick within non-life insurers.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult a financial advisor before making any investment decisions.
