BSE:539113

Stock Analysis Report

Executive Summary

Paul Merchants Limited provides financial services in India.


Snowflake Analysis

Solid track record and fair value.

Share Price & News

How has Paul Merchants's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539113's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

539113

-2.8%

IN Consumer Finance

-3.9%

IN Market


1 Year Return

-46.4%

539113

49.0%

IN Consumer Finance

4.5%

IN Market

Return vs Industry: 539113 underperformed the Indian Consumer Finance industry which returned 51.3% over the past year.

Return vs Market: 539113 underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

539113IndustryMarket
7 Day-5.0%-2.8%-3.9%
30 Day-10.4%9.1%-3.9%
90 Day0.009%13.8%-2.1%
1 Year-46.3%-46.4%50.0%49.0%6.4%4.5%
3 Year-65.6%-65.7%144.0%138.7%19.4%12.8%
5 Yearn/a257.0%241.4%28.2%16.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Paul Merchants undervalued compared to its fair value and its price relative to the market?

4.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 539113's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 539113's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 539113 is good value based on its PE Ratio (4.5x) compared to the Consumer Finance industry average (14.6x).

PE vs Market: 539113 is good value based on its PE Ratio (4.5x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539113's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539113 is good value based on its PB Ratio (0.3x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

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

24.8%

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 Paul Merchants 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 Paul Merchants performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539113 has high quality earnings.

Growing Profit Margin: 539113's current net profit margins (0.5%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: 539113's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: 539113's earnings growth over the past year (19.6%) exceeds its 5-year average (7.3% per year).

Earnings vs Industry: 539113 earnings growth over the past year (19.6%) exceeded the Consumer Finance industry 14.2%.


Return on Equity

High ROE: 539113's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Paul Merchants's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 539113 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 539113's debt is covered by short term assets (assets are 12.9x debt).


Financial Institutions Analysis

Asset Level: 539113's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 539113 has a sufficient allowance for bad loans.

Low Risk Liabilities: 539113 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 539113 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 539113 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 539113 has an appropriate level of bad loans.


Next Steps

Dividend

What is Paul Merchants's current dividend yield, its reliability and sustainability?

0.38%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.7%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 539113's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 539113's dividend (0.38%) is low compared to the top 25% of dividend payers in the Indian market (2.67%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 539113's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 539113's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are 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?

8.0yrs

Average board tenure


CEO

Sat Bansal (72yo)

₹50,400,000

Compensation

Mr. Sat Paul Bansal serves as Executive Chairman and Managing Director at Paul Merchants Limited. Mr. Bansal served as Chief Executive Officer of Paul Merchants Limited. He has been a Director of Paul Merc ...


CEO Compensation Analysis

Compensation vs Market: Sat's total compensation ($USD704.12K) is above average for companies of similar size in the Indian market ($USD50.10K).

Compensation vs Earnings: Sat's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Sat Bansal
Executive Chairman & MD0yrs₹50.40mno data
Rajneesh Bansal
Executive Director21yrs₹7.09m14.57% 160.5m
Dharam Sharma
Whole Time Director4.3yrs₹845.04kno data
Uma Paliwal
Independent Director2.8yrs₹45.00kno data
Vigyan Arora
Non-Executive Independent Director9.8yrs₹42.50kno data
Sarita Bansal
Non-Executive Non Independent Director8.1yrsno data33.62% 370.5m
Sandeep Bansal
Non-Executive Non Independent Director26.4yrsno data14.06% 154.9m
Dilbag Sidhu
Non-Executive Independent Director8yrs₹90.00kno data
Ajay Arora
Non-Executive Independent Director5.8yrs₹120.00kno data
Arjun Ghugal
Non-Executive Independent Director5.3yrs₹100.00kno data

8.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 539113's board of directors are considered experienced (8 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

Paul Merchants Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paul Merchants Limited
  • Ticker: 539113
  • Exchange: BSE
  • Founded: 1984
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹1.102b
  • Shares outstanding: 1.03m
  • Website: https://www.paulmerchants.net

Number of Employees


Location

  • Paul Merchants Limited
  • PML House
  • SCO 829-830
  • Chandigarh
  • Chandigarh
  • 160022
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539113BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2015

Biography

Paul Merchants Limited provides financial services in India. The company offers foreign exchange services in the form of currency notes, traveler cheques, travel cards, outward remittance/wire transfers, and foreign currency drafts; tour and travel services covering air ticketing, hotel accommodation, bus, cruise, holiday package, travel insurance, and forex; domestic money transfer services; and business payment solutions for legal, financial, and educational institutions. It also provides international calling cards; and gold loans. The company was formerly known as Brite Agro Mills Ltd and changed its name to Paul Merchants Limited in 1991. Paul Merchants Limited was incorporated in 1984 and is based in Chandigarh, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:29
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.