Go Digit General (GODIGIT)

FairStock Score: 53/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹319.50, Go Digit General fails my first price test. Graham would calculate a Graham Number of ₹78.03; with the stock at nearly four times that, I have no margin of safety. The stated margin is deeply negative. But let me not ignore the business. General insurance can be a decent compounding model with underwriting discipline, and the low debt and clean score suggest discipline, yet I don't see a wide moat in these numbers. I like a debt/equity of only 0.08 and the Piotroski F-Score of 8/9. Latest quarter net profit of ₹140 Cr on ₹2,570 Cr of sales is respectable, and profit growth of 41.04% is attractive. Yet sales growth is only 9.48%, so the profit jump looks like operating leverage or underwriting improvement rather than durable topline acceleration. I need more evidence before treating 41% as normal. ROE of 11.84% is okay but not the 15% plus I prefer, especially when P/B is 6.85. Free cash flow is minus ₹1,233 Cr; a low-debt balance sheet can still be strained by rapid premium growth. With no dividend, EV/EBITDA of 170x and Altman Z-Score of 1.56, the market is paying a heavy price for a steady insurer. I would not buy at this price. I want either a substantially lower price or proof that profit growth and cash generation can continue. This is a business to watch, not a business to chase.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer