BSE:539113

Stock Analysis Report

Executive Summary

Paul Merchants Limited provides financial services in India.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.

Risks

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

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

34.7%

BSE:539113

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-74.1%

BSE:539113

-3.2%

IN Consumer Finance

-14.7%

IN Market

539113 underperformed the Consumer Finance industry which returned -3.1% over the past year.

539113 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

539113IndustryMarket
7 Day34.7%-3.6%-2.1%
30 Day24.1%1.9%-3.9%
90 Day-21.6%-10.2%-10.1%
1 Year-74.0%-74.1%-2.5%-3.2%-12.9%-14.7%
3 Year-64.8%-64.9%59.3%56.0%17.7%11.5%
5 Yearn/a233.9%218.2%35.4%22.5%

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 based on future cash flows and its price relative to the stock market?

5.62x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Paul Merchants to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Paul Merchants to establish if it is available at substantial discount.


Price Based on Earnings

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

Paul Merchants is good value based on earnings compared to the India market.


Price Based on Expected Growth

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


Price Based on Value of Assets

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


Next Steps

Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Paul Merchants is high growth as no revenue estimate data is available.

Paul Merchants's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

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

Paul Merchants's earnings growth is positive but not above the India market average.

Paul Merchants's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Paul Merchants performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Paul Merchants's year on year earnings growth rate has been positive over the past 5 years.

Paul Merchants's 1-year earnings growth exceeds its 5-year average (34.6% vs 3.2%)

Paul Merchants's earnings growth has exceeded the IN Consumer Finance industry average in the past year (34.6% vs 15%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

Paul Merchants's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Paul Merchants's financial position?


Financial Position Analysis

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

Paul Merchants's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Paul Merchants's level of debt (4.6%) 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 (75.4% vs 4.6% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 11.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 18.2x debt.


Next Steps

Dividend

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

0.33%

Current Dividend Yield


Dividend Yield and Payments Analysis

Paul Merchants's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.65%).

Paul Merchants's dividend is below the markets top 25% of dividend payers in India (2.64%).

It is too early to tell whether Paul Merchants has stable dividend payments.

Paul Merchants only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Paul Merchants 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 Paul Merchants's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average board tenure


CEO

Sat Bansal (72yo)

0.0yrs

Tenure

₹16,286,458

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

Sat's remuneration is higher than average for companies of similar size in India.

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


Board Age and Tenure

7.6yrs

Average Tenure

65yo

Average Age

The tenure for the Paul Merchants board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sat Bansal (72yo)

    Executive Chairman & MD

    • Tenure: 0.0yrs
    • Compensation: ₹16.29m
  • Rajneesh Bansal (45yo)

    Executive Director

    • Tenure: 20.5yrs
    • Compensation: ₹8.61m
  • Hardam Singh

    Legal Head

    • Tenure: 0.0yrs
    • Compensation: ₹2.37m
  • Bhupinder Kaur

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Dharam Sharma (65yo)

    Whole Time Director

    • Tenure: 3.8yrs
    • Compensation: ₹762.31k
  • Swati Bansal (46yo)

    Senior Vice President

    • Tenure: 0.0yrs
  • Harendar Prashar (49yo)

    Country Head

    • Tenure: 0.0yrs
  • Vijay Mohan (53yo)

    Head of HR & Administration

    • Tenure: 0.0yrs

Board Members

  • Uma Paliwal (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹58.50k
  • Vigyan Arora (44yo)

    Non-Executive Independent Director

    • Tenure: 9.3yrs
    • Compensation: ₹53.75k
  • Sat Bansal (72yo)

    Executive Chairman & MD

    • Tenure: 0.0yrs
    • Compensation: ₹16.29m
  • Sarita Bansal (71yo)

    Non-Executive Non Independent Director

    • Tenure: 7.6yrs
    • Compensation: ₹2.37m
  • Sandeep Bansal (49yo)

    Non-Executive Non Independent Director

    • Tenure: 25.9yrs
  • Rajneesh Bansal (45yo)

    Executive Director

    • Tenure: 20.5yrs
    • Compensation: ₹8.61m
  • Dilbag Sidhu (72yo)

    Non-Executive Independent Director

    • Tenure: 0.0yrs
    • Compensation: ₹80.00k
  • Ajay Arora

    Non-Executive Independent Director

    • Tenure: 0.0yrs
    • Compensation: ₹117.00k
  • Arjun Ghugal (66yo)

    Non-Executive Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹122.50k
  • Dharam Sharma (65yo)

    Whole Time Director

    • Tenure: 3.8yrs
    • Compensation: ₹762.31k

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: ₹1.260b
  • 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:54
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.