Brokerage Radar: Morgan Stanley on Go Digit





Initiate Equal-weight with target price of Rs 338

Strong market share and ROE trajectory ahead, but priced in

Believe Go Digit can take advantage of the secular growth offered by India's non-life insurance industry

Strong execution on growth while balancing risk and profits

Expect GDPI CAGR of 25% in FY24-28 with a share gain of over 100 bps

Expect combined ratio to improve from 109% in FY24 to 103% in FY29, led by HD scale

See 25% CAGR for investment gains, driven by strong AUM buildup

Expect net profit CAGR of 59% through FY28 with ROE reaching 19%, up from 7% in FY24


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