BSE:531255

Stock Analysis Report

Executive Summary

Paragon Finance Limited operates as a non-banking finance company in India.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • Paragon Finance has significant price volatility in the past 3 months.
  • Paragon Finance is not covered by any analysts.

Share Price & News

How has Paragon Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.6%

BSE:531255

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-26.7%

BSE:531255

-3.2%

IN Consumer Finance

-14.7%

IN Market

531255 underperformed the Consumer Finance industry which returned -3.1% over the past year.

531255 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

531255IndustryMarket
7 Day4.6%-3.6%-2.1%
30 Day-5.5%1.9%-3.9%
90 Day43.5%-10.2%-10.1%
1 Year-26.7%-26.7%-2.5%-3.2%-12.9%-14.7%
3 Year120.4%120.4%59.3%56.0%17.7%11.5%
5 Year122.4%122.4%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is Paragon Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

May Best Undervalued Stocks

1 year ago | Simply Wall St

May Best Undervalued Stocks

1 year ago | Simply Wall St

May Best Undervalued Stocks

Valuation

Is Paragon Finance undervalued based on future cash flows and its price relative to the stock market?

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Paragon Finance's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Paragon Finance's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Paragon Finance is good value based on earnings compared to the IN Consumer Finance industry average.

Paragon Finance is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Paragon Finance, we can't assess if its growth is good value.


Price Based on Value of Assets

Paragon Finance is good value based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Paragon Finance expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Paragon Finance is high growth as no revenue estimate data is available.

Paragon Finance's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Paragon Finance's revenue growth to the India market average as no estimate data is available.

Paragon Finance's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Paragon Finance's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Paragon Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Paragon Finance performed over the past 5 years?

37.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Paragon Finance has delivered over 20% year on year earnings growth in the past 5 years.

Paragon Finance's 1-year earnings growth is less than its 5-year average (33.2% vs 37.3%)

Paragon Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (33.2% vs 15%).


Return on Equity

Paragon Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Paragon Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Paragon Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Paragon Finance's financial position?


Financial Position Analysis

Paragon Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Paragon Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Paragon Finance's level of debt (5.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (101.9% vs 5.5% today).

Debt is well covered by operating cash flow (301.3%, greater than 20% of total debt).

Unable to confirm if the interest payments on Paragon Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 15.3x debt.


Next Steps

Dividend

What is Paragon Finance's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Paragon Finance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Paragon Finance's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Paragon Finance has not reported any payouts.

Unable to verify if Paragon Finance's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Paragon Finance has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Paragon Finance's salary, the management and board of directors tenure and is there insider trading?

12.9yrs

Average board tenure


CEO

Sanjay Gupta (52yo)

4.9yrs

Tenure

₹1,500,000

Compensation

Mr. Sanjay Kumar Gupta has been the Chief Executive Officer of Paragon Finance Ltd. since September 26, 2014. Mr. Gupta serves as the Compliance Officer of UT Ltd. (known as Usha Telehoist), and served as  ...


CEO Compensation Analysis

Sanjay's remuneration is about average for companies of similar size in India.

Sanjay's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

12.9yrs

Average Tenure

52.5yo

Average Age

The average tenure for the Paragon Finance board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sanjay Gupta (52yo)

    CEO, CFO & Whole-Time Director

    • Tenure: 4.9yrs
    • Compensation: ₹1.50m
  • Swati Sharma

    Company Secretary & Compliance Officer

    • Tenure: 0.4yrs

Board Members

  • Suvabrato Ganguly (53yo)

    Independent Director

    • Tenure: 16.4yrs
  • Aloke Gupta (60yo)

    Non-Executive Director

    • Tenure: 33.0yrs
    • Compensation: ₹1.50m
  • Sanjay Goenka (51yo)

    Independent Director

    • Tenure: 12.9yrs
  • Sanjay Gupta (52yo)

    CEO, CFO & Whole-Time Director

    • Tenure: 4.9yrs
    • Compensation: ₹1.50m
  • Ravi Agarwalla (56yo)

    Independent Director

    • Tenure: 11.6yrs
  • Shreya Gupta (46yo)

    Non-Executive Director

    • Tenure: 5.0yrs
  • Anny Jain

    Independent Director

    • Tenure: 2.8yrs

Company Information

Paragon Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paragon Finance Limited
  • Ticker: 531255
  • Exchange: BSE
  • Founded: 1986
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹72.888m
  • Shares outstanding: 4.25m
  • Website: https://www.paragonfinanceltd.com

Location

  • Paragon Finance Limited
  • Sikkim House
  • 4th Floor
  • Kolkata
  • West Bengal
  • 700071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531255BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Paragon Finance Limited operates as a non-banking finance company in India. The company provides loans against security of vehicles. It is also involved in investing in shares and mutual funds; and financi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:33
End of Day Share Price2019/08/19 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.