In the wake of a stellar financial performance in the fourth quarter, shares of insurtech startup Go Digit surged to an all-time high of INR 372.35 during intraday trading on Wednesday (June 12), signaling robust investor confidence in the company’s growth trajectory.
Impressive Q4 Results Drive Market Sentiment
Following its financial disclosures for the quarter ending March 31, 2024, Go Digit reported a substantial surge in profit after tax (PAT) for the fiscal year 2023-24 (FY24), reaching INR 182 Cr. This marked an impressive over 400% increase from the previous fiscal’s INR 36 Cr. Additionally, the startup witnessed a commendable growth in total gross written premium (GWP), which soared by 24.5% to INR 9,016 Cr from INR 7,243 Cr in FY23.
Market Reaction and Trading Performance
As a testament to the positive sentiment surrounding the company’s performance, Go Digit’s shares opened today’s trading session at INR 365, representing a significant over 7% increase from the previous close. The stock’s upward trajectory led to the attainment of an all-time high before retracing slightly. Despite the intraday fluctuations, Go Digit’s shares concluded today’s trading session at INR 341.75, marking a 1% increase from the previous day’s close.
Market Capitalization and Listing Performance
With the surge in share prices, Go Digit’s market capitalization rose to $3.74 Bn (INR 31,345.39 Cr), reflecting a marginal increase from its previous valuation. The company’s robust listing performance since its debut on the bourses has been noteworthy. While its initial listing saw a modest increase, the shares have consistently demonstrated positive momentum, maintaining an upward trajectory week-on-week.
Analyst Insights and Contrary Perspectives
Despite the favorable market sentiment, brokerage firm Emkay adopted a cautious stance on Go Digit’s prospects. Initiating coverage with a ‘Sell’ rating and a price target (PT) of “INR 210/ish” by June 2025, Emkay raised valuation concerns. Notably, Go Digit’s price-earnings ratio (P/E) and price-to-book (P/B) ratio surpassed those of its listed peers, including ICICI Lombard and Star Health, prompting apprehensions regarding its valuation.
