⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GODIGIT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | GODIGIT | Market Cap | 29,660 Cr. | Current Price | 321 ₹ | High / Low | 381 ₹ |
| Stock P/E | 58.1 | Book Value | 0.00 ₹ | Dividend Yield | 0.00 % | ROCE | 10.8 % |
| ROE | 11.9 % | Face Value | 10.0 ₹ | DMA 50 | 339 ₹ | DMA 200 | 341 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.22 % | PAT Qtr | 140 Cr. | PAT Prev Qtr | 117 Cr. |
| RSI | 36.4 | MACD | -5.34 | Volume | 40,041 | Avg Vol 1Wk | 4,66,923 |
| Low price | 265 ₹ | High price | 381 ₹ | PEG Ratio | 1.15 | 52w Index | 48.0 % |
| Qtr Profit Var | 18.2 % | EPS | 5.53 ₹ | Industry PE | 33.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT increased from 117 Cr. to 140 Cr., showing healthy growth with 18.2% YoY variation.
- Margins: ROE at 11.9% and ROCE at 10.8% reflect moderate profitability compared to industry peers.
- Debt Ratios: Debt-to-equity not disclosed, but balance sheet appears light on leverage.
- Cash Flows: Stable operating cash flows supported by insurance premium collections.
- Return Metrics: EPS at 5.53 ₹ is modest relative to current valuation.
💹 Valuation Indicators
- P/E Ratio: 58.1, significantly above industry PE of 33.2, suggesting overvaluation.
- P/B Ratio: Not available due to zero book value disclosure, limiting clarity.
- PEG Ratio: 1.15, fair valuation considering growth prospects.
- Intrinsic Value: Current price (321 ₹) appears expensive relative to earnings power; upside potential depends on sustained growth.
🏢 Business Model & Competitive Advantage
- Operates in general insurance with focus on digital-first distribution and customer-centric products.
- Competitive advantage lies in technology-driven processes, simplified claims, and strong brand recognition.
- Resilient business model with steady premium inflows, though profitability is sensitive to underwriting performance.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer accumulation range between 290 ₹ – 310 ₹ (near 52-week low and below DMA 200).
- Long-Term Holding: Suitable for investors seeking exposure to digital insurance growth, though valuations are stretched and returns moderate.
Positive
- Strong quarterly PAT growth.
- Technology-driven insurance model with customer focus.
- Domestic institutional inflows (+0.22%) show confidence.
Limitation
- High P/E ratio compared to industry average.
- Dividend yield at 0.00% offers no income support.
- Moderate ROE and ROCE relative to peers.
- Book value not disclosed, limiting valuation clarity.
Company Negative News
- Reduction in FII holdings (-0.22%) indicates cautious foreign investor sentiment.
Company Positive News
- Quarterly PAT growth of 18.2% shows operational improvement.
- Strong traction in digital-first insurance offerings.
Industry
- Insurance sector is expanding with rising demand for digital and simplified products.
- Industry PE at 33.2 reflects moderate optimism and premium valuations.
Conclusion
- Go Digit is a growing digital-first insurance player with strong brand positioning and steady profit growth.
- Valuation is expensive relative to industry, limiting near-term upside.
- Best suited for long-term investors betting on digital insurance adoption, with entry near lower support levels for better risk-reward.
I can also compare Go Digit’s valuation and profitability with peers like ICICI Lombard or SBI General to highlight its relative positioning in the insurance sector.