Shares of Go Digit General Insurance surged 7% to ₹363 in morning trade on July 19 after international brokerage Citi initiated coverage with a ‘buy’ call, citing multiple growth opportunities for the company.
Analysts at Citi have set a price target of ₹425, implying a 25% upside from current levels. They expect the company’s Return on Equity (RoE) to increase to 15-16% in FY26-27 from nearly 7% in FY24.
Citi also anticipates a steady 13% annual growth in non-life premiums, excluding crop insurance, driven by health and B2B business. Despite being relatively new, Go Digit has shown strong growth and is focusing more on B2B business. The company’s established corporate relationships, product bundling, and strong reinsurance supply are expected to support further growth, with a projected 24% gross premium growth per year from FY24-27.
Go Digit made its debut on the bourses on May 23, listing at a 12% premium over the issue price and gaining 17% since. Ace cricketer Virat Kohli and his wife Anushka Sharma are investors in the company, and their investments have grown four-fold. Kohli’s ₹2 crore investment has surged to ₹8 crore, while Sharma’s investment has appreciated to ₹2 crore, making their combined shares worth ₹10 crore.
As of 11:00 AM, shares were trading 2.32% higher at ₹348.30 on NSE.
