BSE:532900

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Paisalo Digital Limited provides business loans, SME and MSME loans, and income generation loans for business/self-employment purpose in India.


Snowflake Analysis

Second-rate dividend payer with questionable track record.

Share Price & News

How has Paisalo Digital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532900's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

532900

1.5%

IN Consumer Finance

1.3%

IN Market


1 Year Return

-41.0%

532900

-18.5%

IN Consumer Finance

-8.7%

IN Market

Return vs Industry: 532900 underperformed the Indian Consumer Finance industry which returned -18.5% over the past year.

Return vs Market: 532900 underperformed the Indian Market which returned -8.7% over the past year.


Shareholder returns

532900IndustryMarket
7 Day-0.5%1.5%1.3%
30 Day15.4%18.3%5.1%
90 Day30.0%33.9%30.2%
1 Year-40.8%-41.0%-17.9%-18.5%-7.0%-8.7%
3 Year47.0%45.5%34.6%31.8%1.7%-3.0%
5 Year-25.0%-26.3%143.7%133.8%27.6%17.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Paisalo Digital undervalued compared to its fair value and its price relative to the market?

17.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532900 (₹218.35) is trading above our estimate of fair value (₹19.56)

Significantly Below Fair Value: 532900 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532900 is poor value based on its PE Ratio (17.1x) compared to the Consumer Finance industry average (11.9x).

PE vs Market: 532900 is poor value based on its PE Ratio (17.1x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532900's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532900 is overvalued based on its PB Ratio (1.2x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Paisalo Digital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.9%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Paisalo Digital has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Paisalo Digital performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532900 has high quality earnings.

Growing Profit Margin: 532900's current net profit margins (24.8%) are lower than last year (26.6%).


Past Earnings Growth Analysis

Earnings Trend: 532900's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: 532900's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532900 had negative earnings growth (-3.9%) over the past year, making it difficult to compare to the Consumer Finance industry average (4.4%).


Return on Equity

High ROE: 532900's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Paisalo Digital's financial position?


Financial Position Analysis

Short Term Liabilities: 532900's short term assets (₹19.9B) exceed its short term liabilities (₹50.6M).

Long Term Liabilities: 532900's short term assets (₹19.9B) exceed its long term liabilities (₹14.8B).


Debt to Equity History and Analysis

Debt Level: 532900's debt to equity ratio (161.5%) is considered high.

Reducing Debt: 532900's debt to equity ratio has increased from 77.2% to 161.5% over the past 5 years.

Debt Coverage: 532900's debt is not well covered by operating cash flow (2.8%).

Interest Coverage: Insufficient data to determine if 532900's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Paisalo Digital current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532900's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: 532900's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (2.81%).


Stability and Growth of Payments

Stable Dividend: 532900's dividends per share have been stable in the past 10 years.

Growing Dividend: 532900's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.8%), 532900's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Sunil Agarwal (49yo)

12.42yrs

Tenure

₹53,590,000

Compensation

Mr. Sunil Agarwal serves as a Managing Director, Chief Executive Officer and Executive Director of Paisalo Digital Limited since February 20, 2008. Mr. Agarwal is responsible for the business and brand bui ...


CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD718.01K) is above average for companies of similar size in the Indian market ($USD49.50K).

Compensation vs Earnings: Sunil's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sunil Agarwal
MD, CEO & Executive Director12.42yrs₹53.59m7.73% 714.5m
Manendra Singh
Compliance Officer & Company Secretary3.5yrs₹950.00kno data
Harish Singh
Executive Director11.92yrs₹2.42mno data
Anoop Krishna
Executive Director2.42yrs₹3.60mno data
Atul Agarwal
Chief Financial Officer1.17yrsno datano data
Anurag Sinha
Chief Operating Officerno datano datano data
Sachindra Kumar
Chief Technology Officerno datano datano data
Manish Goyal
Chief Marketing Officerno datano datano data
Gaurav Chaubey
Chief Credit Officerno datano datano data
Dheeraj Beri
Chief Risk Officerno datano datano data

3.5yrs

Average Tenure

51yo

Average Age

Experienced Management: 532900's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sunil Agarwal
MD, CEO & Executive Director12.42yrs₹53.59m7.73% 714.5m
Harish Singh
Executive Director11.92yrs₹2.42mno data
Anoop Krishna
Executive Director2.42yrs₹3.60mno data
Raman Aggarwal
Additional Non-Executive Independent Director0.75yrno datano data
Gauri Shankar
Non-Executive Independent Director3yrsno datano data
Sunil Srivastav
Additional Non Executive Independent Director2.25yrsno datano data
Naresh Jain
Independent Director5.92yrsno datano data
Pradeep Agarwal
Independent Director5.33yrsno datano data
Nisha Jolly
Additional Non Executive Independent Woman Director0.17yrno datano data

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: 532900's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Paisalo Digital Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paisalo Digital Limited
  • Ticker: 532900
  • Exchange: BSE
  • Founded: 1992
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹9.241b
  • Shares outstanding: 42.29m
  • Website: https://www.paisalo.in

Location

  • Paisalo Digital Limited
  • Sanjay Place
  • Block 54
  • Agra
  • Uttar Pradesh
  • 282002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532900BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2008
PAISALONSEI (National Stock Exchange of India)YesEquity SharesININRApr 2008

Biography

Paisalo Digital Limited provides business loans, SME and MSME loans, and income generation loans for business/self-employment purpose in India. It offers income generation loans for purchasing seeds, fodder, cattle’s, etc.; and Paisalo- Joint Liability Group loans for agriculture and allied sector. The company was formerly known as S. E. Investments Limited and changed its name to Paisalo Digital Limited in January 2018. Paisalo Digital Limited was founded in 1992 and is headquartered in Agra, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 12:38
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.