Comments
Target: ₹230
CMP: ₹392.50
We recently met Kamesh Goyal (Founder and Chairman), Jasleen Kohli (CEO), and Ravi Khetan (CFO) of Go Digit for an update on the company’s strategy and recent developments in the general insurance sector.
KTAs: Profitable growth remains central to the company’s strategy; the company has adopted an agile and opportunity-based approach to growth, focusing on the not-so-overly competitive segments; it maintains a channel-agnostic stance, with clear aim of not becoming too contingent on, or to have excessive concentration in, any single distributor; and technology and Data Analytics continue to be the key differentiators and enablers of the execution of its agile and opportunity-based strategy, which includes acceleration or deceleration in any product or channel.
While we appreciate the company’s strategy and management’s capabilities, we remain skeptical about its strategy being able to parallelly deliver both growth and profitability. Also, our muted tariff outlook on Motor TP, the persistent competitive intensity in Motor OD, and Go Digit’s premium valuation press us to reiterate our Sell rating on the stock and Jun-25E TP of ₹230/share.
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