Paisalo Digital Ltd. (PAISALO) AI Stock Analysis

• Market Cap: ₹34.27B
• Dividend Yield: 0.26%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.81
• Revenue Growth: 13.28%
• EPS Growth: -6.07%
• Country: IN
• Employees: 2,409
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.52
• Shares Outstanding: 902,118,300
• 10 Day Avg. Volume: 2,025,670
• 30 Day Avg. Volume: 1,086,347
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹39.00
• Price Target Upside: 2.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ₹39.00 ▲(2.66% Upside)

Paisalo Digital Ltd. scores moderately due to strong profitability and a stable balance sheet, offset by high leverage and negative cash flows. Technical analysis indicates potential short-term momentum, but overbought signals suggest caution. Valuation appears reasonable, though the low dividend yield offers limited income potential.

Positive Factors

Business Model Strength

Paisalo Digital's focus on underserved markets provides a strong niche, leveraging technology to enhance customer experience and drive growth.

Profitability Metrics

High profitability margins indicate efficient operations and cost management, supporting long-term financial stability and growth potential.

Stable Equity Base

A stable equity base with positive returns indicates strong financial health and effective capital management, enhancing investor confidence.

Negative Factors

High Leverage

High leverage increases financial risk and can strain cash flow, potentially limiting the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows suggest liquidity challenges, which may hinder the company's ability to fund operations and invest in future growth.

Moderate Revenue Growth

Moderate revenue growth may indicate market saturation or competitive pressures, potentially limiting the company's expansion prospects.

Paisalo Digital Ltd. Business Overview & Revenue Model

Company Description

Paisalo Digital Ltd. is a Non-Banking Financial Company (NBFC) based in India, primarily engaged in providing financial services to underserved and unbanked segments of the Indian population. The company offers a range of lending products including small and medium-sized enterprise (SME) loans, personal loans, and microfinance services. Paisalo Digital aims to facilitate financial inclusion by providing easy access to credit for individuals and small businesses, leveraging technology to streamline operations and enhance customer experience.

How the Company Makes Money

Paisalo Digital Ltd. generates revenue primarily through interest income on the loans it disburses. The company's core revenue stream is derived from the interest charged on various types of loans, including SME loans, personal loans, and microfinance products. Additionally, the company may earn fees from processing loans and providing advisory services. Paisalo Digital often collaborates with banks and other financial institutions to expand its reach and enhance its product offerings, which can contribute to its revenue through partnership arrangements and co-lending activities.

Paisalo Digital Ltd. Financial Statement Overview

Summary

Paisalo Digital Ltd. demonstrates strong profitability metrics and a stable balance sheet, albeit with high leverage. The company's financial health could be improved by addressing cash flow issues, particularly the conversion of income into cash. The high debt level and negative cash flows are areas of concern for long-term sustainability.

Income Statement

Paisalo Digital Ltd. shows a strong profitability profile with a high gross profit margin consistently at 100% due to its business model. The net profit margin and EBIT margins are healthy, indicating efficient cost management. However, the revenue growth rate over recent years is moderate, suggesting potential challenges in expanding their top line further. The EBITDA margin remains robust, supporting operational stability.

Balance Sheet

The balance sheet reflects a significant reliance on debt, with a substantial debt-to-equity ratio, indicative of high leverage which could pose financial risk. Despite this, the company maintains a solid equity base with a positive return on equity, suggesting effective use of shareholder funds. The equity ratio is stable, reflecting a good proportion of assets funded by equity.

Cash Flow

Cash flow analysis reveals challenges, as operating cash flow is consistently negative, indicating potential liquidity issues. The free cash flow is also negative, which may impact future growth investments. However, the operating cash flow to net income ratio suggests that while net income is positive, it is not converting well into cash, pointing to cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.89B	4.17B	3.77B	4.73B	3.92B	3.46B
Gross Profit	4.31B	4.17B	3.89B	4.56B	3.80B	3.36B
EBITDA	2.10B	2.98B	4.84B	3.30B	2.87B	2.40B
Net Income	2.00B	2.00B	1.79B	936.19M	792.51M	579.80M
Balance Sheet
Total Assets	52.55B	52.55B	41.23B	33.54B	27.58B	22.70B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.05B	145.76M	291.11M	91.36M	479.85M
Total Debt	35.59B	35.59B	26.55B	21.17B	16.76B	13.49B
Total Liabilities	37.20B	37.20B	27.94B	21.91B	17.34B	14.05B
Stockholders Equity	15.35B	15.35B	13.29B	11.63B	10.23B	8.65B
Cash Flow
Free Cash Flow	0.00	-8.55B	-5.73B	-4.58B	-3.98B	-979.59M
Operating Cash Flow	0.00	-8.42B	-5.70B	-4.52B	-3.96B	-978.87M
Investing Cash Flow	0.00	-126.79M	26.02M	-50.74M	-30.82M	-716.00K
Financing Cash Flow	0.00	9.45B	5.53B	4.76B	3.62B	1.11B

Paisalo Digital Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAISALO, the sentiment is Positive. The current price of 37.99 is above the 20-day moving average (MA) of 32.78, above the 50-day MA of 31.81, and above the 200-day MA of 37.81, indicating a bullish trend. The MACD of 1.79 indicates Negative momentum. The RSI at 78.57 is Negative, neither overbought nor oversold. The STOCH value of 83.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PAISALO.

Paisalo Digital Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.75%	9.73%	1.23%
PAISALO	60 Neutral	₹34.27B	16.61		0.26%	13.28%	-6.07%
ARMANFIN	58 Neutral	₹15.01B	242.08		―	0.02%	-96.51%
FUSION	52 Neutral	₹30.12B	―		―	-17.87%	-461.29%
SPANDANA	52 Neutral	₹23.08B	26.37		―	-26.77%	-431.45%
UGROCAP	51 Neutral	₹20.31B	11.25		―	34.09%	17.49%
UTKARSHBNK	45 Neutral	₹23.68B	101.76		2.33%	12.40%	-166.78%

Paisalo Digital Ltd. Corporate Events

Paisalo Digital Appoints New Internal Ombudsman

Paisalo Digital Ltd. has announced the appointment of Mr. Rajesh Kumar Singh as the Internal Ombudsman, in line with the Reserve Bank of India’s directives. This appointment is expected to strengthen the company’s regulatory compliance and enhance its governance framework, potentially improving stakeholder confidence.

Paisalo Digital Appoints New Internal Ombudsman to Strengthen Governance

Paisalo Digital Ltd. has announced the appointment of Mr. Rajesh Kumar Singh as the Internal Ombudsman, effective from September 1, 2025. This move aligns with the Reserve Bank of India’s directives and is expected to enhance the company’s compliance and governance framework, potentially strengthening its position in the financial services sector.

Paisalo Digital Ltd. Approves Rs. 50 Crore Debenture Issuance

Paisalo Digital Ltd. announced the approval of issuing up to 5,000 non-convertible debentures through a private placement, with a total value of up to Rs. 50 crore. This strategic financial move, approved by the company’s Operations and Finance Committee, aims to bolster their capital structure and enhance liquidity, potentially impacting their market positioning positively.

Paisalo Digital Lists FCCBs on Global Securities Market

Paisalo Digital Limited has announced the listing of its 7.5% Foreign Currency Convertible Bonds (FCCBs) due 2029 on the ‘Global Securities Market’ of India International Exchange (IFSC) Limited, effective from July 31, 2025. This move signifies a strategic step for Paisalo Digital Limited, potentially enhancing its financial flexibility and market reach, thereby impacting its operations and positioning within the financial industry.