Digidrive Distributors Limited (DIGIDRIVE) AI Stock Analysis

Digidrive Distributors Limited

(NSE:DIGIDRIVE)

Select Model

Rating:45Neutral

Price Target:INR 19.00▲(2.81% Upside)

Action:upgraded

Date:08/25/26

Digidrive Distributors scores low primarily because of deteriorating fundamentals: shrinking revenue, a dramatic collapse in gross margins to single digits, negative operating profit, and volatile, unreliable cash flows. Reported net income is positive but appears driven by non-operating items rather than core operations. The main offset is a debt-free balance sheet with a large equity cushion, which limits financial risk but is generating very low returns. Technically the stock is below its 50-, 100- and 200-day averages with negative MACD, reflecting a sustained downtrend despite a short-term bounce above the 20-day average. A modest P/E of 12 offers some support, but with no dividend and weak earnings quality, the valuation is not clearly attractive. Evidence of a turnaround in core operations would be needed to justify a higher score.

Positive Factors

Very low leverageExtremely low leverage reduces financial stress and preserves flexibility during weaker operating periods. A debt-light structure can support continued investment, protect liquidity, and give management more room to respond to volatility without substantial interest or refinancing burdens.

Negative Factors

Sharp revenue contractionA roughly 19% annual revenue decline indicates a material weakening in business activity rather than merely slower growth. Sustained contraction would reduce operating leverage, limit reinvestment capacity, and make recovery in profitability more dependent on cost reductions.

Digidrive Distributors Limited (DIGIDRIVE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 690.26M
Dividend Yield: ―
Average Volume (3M): 2,087
Price to Earnings (P/E): 12.0
Beta (1Y): 1.50
Revenue Growth: -8.39%
EPS Growth: 32.41%
Country: India
Employees: 8
Sector: General
Sector Strength: 55
Industry: Specialty Retail

Digidrive Distributors Limited Business Overview & Revenue Model

Company Description

Digidrive Distributors Limited, operating in conjunction with its affiliate Open Media Network Private Limited, focuses on selling consumer goods through various online retail channels throughout India. The company's operations are segmented into two...

Digidrive Distributors Limited Financial Statement Overview

Summary

Weak overall, driven by a deteriorating income statement (score 28): revenue fell ~19% in FY2026 after a ~25% drop in FY2025, gross margins collapsed from ~33% to ~6.4%, and EBIT/EBITDA turned negative. Positive net income appears supported by non-operating items, raising earnings-quality concerns. Cash flow (score 30) is highly erratic, swinging between negative and positive across four years, with weak conversion of profits into cash. The clear offset is a strong balance sheet (score 72) with near-zero debt-to-equity (~0.3%) and equity that doubled to ₹2.72B, though very low return on equity (~1.9%) points to inefficient capital deployment.

Income Statement

28Negative

Balance Sheet

72Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	468.00M	461.50M	358.00M	476.25M	429.30M
Gross Profit	85.60M	29.70M	106.60M	158.22M	147.90M
EBITDA	84.90M	82.40M	102.20M	60.99M	-6.20M
Net Income	57.50M	53.80M	79.06M	40.55M	46.50M
Balance Sheet
Total Assets	0	3.09B	3.14B	2.51B	1.47B
Cash, Cash Equivalents and Short-Term Investments	169.20M	168.30M	101.70M	180.00M	56.09M
Total Debt	0	8.70M	8.40M	921.00K	4.38M
Total Liabilities	-2.72B	369.40M	394.20M	253.72M	109.28M
Stockholders Equity	2.72B	2.72B	2.75B	2.26B	1.36B
Cash Flow
Free Cash Flow	-23.40M	53.70M	-80.50M	75.89M	-86.08M
Operating Cash Flow	-23.10M	57.40M	-80.10M	76.17M	-85.76M
Investing Cash Flow	47.00M	-53.00M	13.80M	-28.53M	69.20M
Financing Cash Flow	-2.60M	-5.60M	-4.00M	-3.81M	-4.36M

Digidrive Distributors Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price18.48

Price Trends

50DMA17.81Negative

100DMA18.03Negative

200DMA19.94Negative

Market Momentum

MACD-0.11Positive

RSI45.95Neutral

STOCH25.94Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIGIDRIVE, the sentiment is Negative. The current price of 18.48 is above the 20-day moving average (MA) of 18.06, above the 50-day MA of 17.81, and below the 200-day MA of 19.94, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 25.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DIGIDRIVE.

Digidrive Distributors Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DIGIDRIVE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:NYKAA	67Neutral	INR 1.00T	392.53	―	―	27.41%	220.61%
IN:MANYAVAR	64Neutral	INR 116.19B	30.12	―	1.62%	1.95%	-2.63%
IN:EMIL	56Neutral	INR 58.35B	28.31	―	―	16.84%	88.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DIGIDRIVE	45Neutral	INR 674.45M	12.01	―	―	-8.39%	32.41%
IN:PRAXIS	37Underperform	INR 785.99M	-1.75	―	―	-11.04%	-6.64%

* General Sector Average

Performance Comparison

IN:DIGIDRIVE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DIGIDRIVE	Digidrive Distributors Limited	18.12	-10.18	-35.97%
IN:EMIL	Electronics Mart India Limited	155.10	8.60	5.87%
IN:MANYAVAR	Vedant Fashions Limited	494.35	-141.04	-22.20%
IN:NYKAA	FSN E-Commerce Ventures Ltd.	353.10	102.35	40.82%
IN:PRAXIS	Praxis Home Retail Ltd.	4.23	-7.92	-65.19%
IN:MEESHO	Meesho Limited	222.30	52.10	30.61%

Digidrive Distributors Limited Corporate Events

Digidrive Distributors details AGM proceedings and voting outcomes

Sep 16, 2026

Digidrive Distributors Limited has reported to the NSE and BSE the outcome of its fourth Annual General Meeting held on September 16, 2026 via video conferencing. The company has filed the AGM proceedings, detailed voting results for all resolutions,...

Digidrive Distributors Board Clears Q1 FY2026-27 Results After Auditor Review

Aug 12, 2026

Digidrive Distributors Limited’s board met on August 12, 2026, and approved the unaudited standalone and consolidated financial results for the first quarter of the 2026-27 financial year ended June 30, 2026. The results, together with a limite...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 25, 2026

Digidrive Distributors Limited AI Stock Analysis