India's Go Digit up; Jefferies sees co benefitting from premium auto segment mix

Go Digit General Insurance

23/08/2024 06:45

** Go Digit General Insurance  GODG.NS  up 2% at 366.4
rupees
    ** Jefferies initiates coverage with "buy" rating, sets TP
of 420 rupees - 16.9% premium over Thursday's close
    ** Says co set to benefit from earnings growth momentum as
auto mix moves towards premium high-value segments and
competitive intensity moderates
    ** Says GODG's product diversification and operating
leverage has led to 41% CAGR over FY21-24 and will improve its
combined ratio
    ** Estimates 73% CAGR in EPS and 16% expansion in return on
equity over FY24-FY27
    ** Stock up ~35% over issue price since market debut in late
May - NSE data

 (Reporitng by Nishit Navin)
 ((nishit.navin@thomsonreuters.com;))