Paisalo Digital (PAISALO)

FairStock Score: 45/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 14.84% and ROCE of 13.13% indicate acceptable capital efficiency for an NBFC.
• Piotroski F-Score of 7/9 suggests sound recent fundamentals.
• Sales growth of 17.82% shows the business is expanding.
• P/E of 15.31 and PEG of 1.23 are not demanding if earnings growth improves.
• Promoter holding of 41.75% provides reasonable alignment with minority shareholders.

Concerns

• Profit growth of 7.06% lags sales growth of 17.82%, pointing to margin pressure.
• Debt/Equity of 2.26 is normal for the sector but can amplify credit or liquidity shocks.
• P/B of 2.88 and dividend yield of 0.28% offer limited downside protection and income.
• FairStock Score of 41/100 is mixed, and the stock is well below its 52-week high of ₹77.39.

AI Analysis

At ₹44.62, Paisalo Digital has a market capitalisation of ₹3,234 Cr. I see a profitable lender earning a return on equity of 14.84% and a return on capital employed of 13.13%, which is acceptable for an NBFC. The Piotroski score of 7/9 also tells me the company is not in obvious financial distress. Still, I must compare price to value. Book value is ₹15.48, so the market is paying ₹2.88 for every rupee of book equity. That is not a Graham-style bargain. The P/E of 15.31 is reasonable, and the PEG of 1.23 suggests the market is pricing in moderate earnings growth, but the actual profit growth of 7.06% is only about one-third of the 17.82% sales growth. That gap concerns me. In financial businesses, revenue growth that does not show up in profits often means the company is buying growth with higher leverage, lower yields, or weaker credit standards. Debt to equity of 2.26 is common for an NBFC, but it leaves no room for complacency. Dividend yield is just 0.28%, so the return is entirely dependent on capital appreciation. Promoters hold 41.75%, which aligns their interests with mine at a basic level, but this is not a moat. The 52-week range of ₹29.86 to ₹77.39 shows the stock has already been through a boom and a reset. FairStock Score of 41/100 says mixed, and I agree. This is a slowly growing business, not a compounder at a wonderful price. I would wait for a lower price, or for profit growth to show it can match sales growth before treating it as a serious value idea.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer