Sell Go Digit; target of Rs 250: Emkay Global Financial

Emkay Global Financial is sell on Go Digit has recommended sell rating on the stock with a target price of Rs 250 in its research report dated February 18, 2025.

Broker Research

February 19, 2025 / 12:16 IST

sell

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Go Digit

Go Digit hosted an Analyst/Investor Day on 17-Feb-25 in Bangalore, for select analysts and investors where the management provided a detailed update on its business strategy and outlook. We were not part of this invite. Based on the presentation, the KTAs are: 1) Motor remains a focus area for the company, with strong focus on the profitable renewal pool. 2) The management’s selective approach toward Retail and Group Health, as the market environment remains unfavorable due to heightened competition and medical inflation. 3) Rate hardening to aid commercial lines (Fire and Engineering). 4) Technology and data science capabilities remain a key differentiator for driving customer experience, quality underwriting, and partnerships. While we appreciate Go Digit’s selective and agile approach toward growth, we continue to see challenges to ‘growth with profitability’, amid a difficult industry environment owing to weak motor vehicle sales, stagnant Motor TP tariff, and sustained competition in the Group Health segment.

Outlook

Against this backdrop, we reiterate SELL with unchanged Dec-25E TP of Rs 250 (implying FY26E P/E of 40.5x and FY26E P/B of 4.9x).

For all recommendations report, click here