Go Digit General (GODIGIT)
StalwartFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹259.65 |
| Market Cap | ₹24,004.62 Cr |
| P/E Ratio | 48.81 |
| ROCE | 10.8% |
| ROE | 11.84% |
| Dividend Yield | 0% |
| Profit Growth | -37.6% |
| Debt/Equity | 0.07 |
| Sales Growth | 8.6% |
| Free Cash Flow | ₹-1,233.4 Cr |
| Promoter Holding | 73.02% |
| 52-Week Range | ₹245 — ₹381.4 |
| Sector | Insurance |
| Book Value | ₹50.69 |
Strengths
- Clean balance sheet with debt/equity of only 0.08
- Piotroski F-Score of 8/9 suggests strong operational and earnings quality
- Profit growth of 41.04% and PEG of 0.40 could make the P/E more reasonable if growth sustains
- Promoter holding of 73.02% keeps management aligned with minority shareholders
Concerns
- Valuation is expensive: P/E 60.80, P/B 6.85, and price is about 4.1x the Graham Number
- Negative free cash flow of ₹1,233 Cr raises questions about capital needs despite low debt
- Sales growth of only 9.48% means 41% profit growth may be a one-off or underwriting-cycle driven
- No dividend yield and EV/EBITDA of 170x leave no income cushion if growth disappoints
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer