GODIGIT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

📊 Core Financials Breakdown

Profitability

ROE: 11.9% and ROCE: 10.8% — decent, but not standout for a financial services firm.

EPS: ₹5.01 — modest earnings base, though quarterly PAT grew 36.5%, showing momentum.

PAT Qtr: ₹138 Cr vs ₹116 Cr — consistent improvement, but margins remain thin.

Balance Sheet & Leverage

Debt-to-Equity: 0.08 — low leverage, a positive for stability.

Book Value: ₹46.7 — implies a P/B ratio of ~7.6, which is high for an insurer.

Dividend Yield: 0.00% — no income for long-term holders.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 70.4 Extremely high vs industry average (39.8) — overvalued

PEG Ratio 1.39 Fair, but suggests growth is priced in

Intrinsic Value ~₹310–₹330 CMP is slightly above fair value zone

Valuation is stretched, especially given modest profitability and high P/B.

🛡️ Business Model & Competitive Edge

Sector: General Insurance — digital-first, tech-enabled underwriting and claims.

Strengths

Rapid growth in motor, health, and travel insurance segments.

Strong tech stack and customer experience focus — differentiates from legacy players.

FII holding up (+0.42%) — positive foreign sentiment.

Challenges

DII holding down (-0.88%) — cautious domestic stance.

High valuation multiples and thin margins.

PEG ratio and P/E suggest aggressive growth expectations.

📉 Technicals & Entry Zone

Current Price: ₹353

DMA 50: ₹354 | DMA 200: ₹335 — hovering near support

RSI: 45.0 — neutral zone

MACD: Negative — momentum cooling

📌 Suggested Entry Zone: ₹320–₹340

A dip near the 200 DMA would offer a better margin of safety for accumulation.

🧭 Long-Term Holding Guidance

Hold with caution: If already invested, monitor profitability and margin expansion.

Avoid fresh entry at CMP: Wait for valuation to cool or earnings to justify the premium.

Analysts forecast ~22% annual earnings growth

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, which could support long-term upside if execution remains strong. You can explore Go Digit’s full financials and valuation metrics or review its technical chart and performance overview for deeper insights. Let me know if you'd like a peer comparison with ICICI Lombard or Star Health.

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