Midcap stock in green after acquiring stake worth over ₹30 Cr in Dr Reddy’s Laboratories

During Thursday’s trading session, the shares of a publicly listed general insurance company and one of India’s leading new-age insurance companies surged nearly 2.2 percent on BSE, after the company announced acquiring a 0.32 percent stake in Dr. Reddy’s Laboratories.

Price Movement

With a market capitalisation of Rs. 28,050.4 crores, at 11:06 a.m., the shares of Go Digit General Insurance Limited were trading in the green at Rs. 303.95, up by around 1 percent, as against its previous closing price of Rs. 301.4.

The stock has delivered negative returns of nearly 17 percent in the last six months, as well as around 0.2 percent returns in the last one month.

What’s the News

According to the latest regulatory filings with the stock exchanges, Go Digit General Insurance Limited has invested in the shares of Dr Reddy’s Laboratories Limited.

The company has made an investment of Rs. 30.06 crores in the shares of Dr Reddy’s Laboratories Limited, bringing its total holding in the company to 0.32 percent.

About the Target Entity

Incorporated in 1984, Dr. Reddy’s Laboratories Limited is a leading India-based pharmaceutical company that offers a wide range of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.

In FY24, the company reported a turnover of Rs. 28,011 crores, up from Rs. 24,670 crores in FY23 and Rs. 21,545 crores in FY22.

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Financials

Go Digit reported a significant growth in its Gross Written Premium, showing a year-on-year rise of 10.3 percent from Rs. 2,428 crores in Q3 FY24 to Rs. 2,677 crores in Q3 FY25.

Similarly, its net profit increased during the same period from Rs. 43 crores to Rs. 119 crores, indicating an impressive growth of around 176.7 percent YoY.

The company’s Premium Retention Ratio for Q3 FY25 stood at 83.8 percent, as compared to 87.9 percent in Q3 FY24.

As of 31st December 2024, Go Digit’s assets under management (AUM) reached Rs. 18,939 crores, up from Rs. 15,764 crores as of 31st March 2024, reflecting a growth of 20.1 percent.

About the Company

Incorporated in 2016, Go Digit General Insurance Limited, a subsidiary of Go Digit Infoworks Services Private Limited, is engaged in undertaking the General Insurance business.

As of Q3 FY24, the company holds a 6.1 percent market share in motor insurance, while its overall market share stands at 3.3 percent.

Written by Shivani Singh

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