NSEI:PAISALO

Stock Analysis Report

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: PAISALO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.7%

PAISALO

1.2%

IN Consumer Finance

-0.8%

IN Market


1 Year Return

-9.4%

PAISALO

58.1%

IN Consumer Finance

11.1%

IN Market

Return vs Industry: PAISALO underperformed the Indian Consumer Finance industry which returned 56.2% over the past year.

Return vs Market: PAISALO underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

PAISALOIndustryMarket
7 Day16.7%1.2%-0.8%
30 Day-33.5%9.1%-2.3%
90 Day-36.9%12.7%2.1%
1 Year-9.2%-9.4%59.1%58.1%13.1%11.1%
3 Year53.9%52.3%137.8%132.9%22.9%16.2%
5 Year0.9%-0.9%261.5%246.1%34.9%22.6%

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

Valuation

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

22.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PAISALO (₹272.85) is trading above our estimate of fair value (₹44.46)

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


Price To Earnings Ratio

PE vs Industry: PAISALO is poor value based on its PE Ratio (22.1x) compared to the Consumer Finance industry average (14.7x).

PE vs Market: PAISALO is poor value based on its PE Ratio (22.1x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PAISALO is overvalued based on its PB Ratio (1.5x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

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

24.7%

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: PAISALO has high quality earnings.

Growing Profit Margin: PAISALO's current net profit margins (24.1%) are lower than last year (29.8%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: PAISALO had negative earnings growth (-15.4%) over the past year, making it difficult to compare to the Consumer Finance industry average (10.9%).


Return on Equity

High ROE: PAISALO's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Paisalo Digital'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: PAISALO has a high level of physical assets or inventory.

Debt Coverage by Assets: PAISALO's debt is covered by short term assets (assets are 1.7x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

0.37%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PAISALO's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: PAISALO's dividend (0.37%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.1%), PAISALO'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?

3.1yrs

Average management tenure


CEO

Sunil Agarwal (48yo)

12yrs

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 ($USD749.36K) is above average for companies of similar size in the Indian market ($USD298.20K).

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 Director12yrs₹53.59m7.73% 893.2m
Manendra Singh
Compliance Officer & Company Secretary3.1yrs₹950.00kno data
Harish Singh
Executive Director11.5yrs₹2.42mno data
Anoop Krishna
Executive Director2yrs₹3.60mno data
Atul Agarwal
Chief Financial Officer0.8yrsno datano data
Anurag Sinha
Chief Operating Officer0yrsno datano data
Sachindra Kumar
Chief Technology Officer0yrsno datano data
Manish Goyal
Chief Marketing Officer0yrsno datano data
Gaurav Chaubey
Chief Credit Officer0yrsno datano data
Dheeraj Beri
Chief Risk Officer0yrsno datano data

3.1yrs

Average Tenure

50yo

Average Age

Experienced Management: PAISALO's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sunil Agarwal
MD, CEO & Executive Director12yrs₹53.59m7.73% 893.2m
Harish Singh
Executive Director11.5yrs₹2.42mno data
Anoop Krishna
Executive Director2yrs₹3.60mno data
Bhama Krishnamurthy
Additional Non-Executive Woman Independent Director2.3yrsno datano data
Raman Aggarwal
Additional Non-Executive Independent Director0.3yrsno datano data
Gauri Shankar
Non-Executive Independent Director2.6yrsno datano data
Sunil Srivastav
Additional Non Executive Independent Director1.8yrsno datano data
Naresh Jain
Independent Director5.5yrsno datano data
Pradeep Agarwal
Independent Director4.9yrsno datano data

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: PAISALO's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Paisalo Digital Limited
  • Ticker: PAISALO
  • Exchange: NSEI
  • Founded: 1992
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹11.552b
  • 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 Analysis2020/02/17 12:58
End of Day Share Price2020/02/17 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.