Shares of Go Digit General Insurance surged 7 percent to Rs 363 in the morning trade on July 19 after international brokerage Citi initiated coverage with a 'buy' call as it sees multiple levers of growth for the company.
Analysts have assigned a price target of Rs 425, implying an upside potential of 25 percent from the current market levels. Citi expects the company's Return on Equity (RoE) to increase to 15-16 percent in FY26-27 from nearly 7 percent in FY24.
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A steady 13 percent annual growth in non-life premiums (excluding crop insurance), driven by health and B2B business is also anticipated, Citi said in a recent note on the company.
Despite being relatively new, Go Digit has shown strong growth and is focusing more on B2B business. Established corporate relationships, product bundling, and strong reinsurance supply are expected to support further growth, with a projected 24 percent gross premium growth per year from FY24-27, Citi says.
Go Digit shares recently made its debut on the bourses on May 23. On the listing day, shares were listed at a 12 percent premium over the issue price and have since gained 17 percent.
Ace cricketer Virat Kohli and his wife Anushka Sharma are investors in the company. After the listing, data shows that the couple's investment has grown four-fold while they continue to hold their shares in the company.
With the share price exceeding Rs 300, Virat Kohli's Rs 2 crore investment has surged to Rs 8 crore, and Anushka Sharma’s investment has appreciated to Rs 2 crore. Combined, their shares are now worth Rs 10 crore.
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