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Paisalo Digital
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Paisalo Digital Ltd (Erstwhile known S. E. Investments Limited (SEIL)) was incorporated as Private Limited Company in the state of Uttar Pradesh and started commercial vehicle finance. The Company is a Systemically Important Non-Deposit Taking Non-Banking Financial Company engaged in providing loans. It is primarily focusing on financing self-employed borrowers, a segment which is still untapped / unserved, driven by rising affluence, aspirations and favorable demographics. The company operates through three divisions, namely Financial Services division, Microcredit division and Alternate Energy.
The Financial Services division offers hire-purchase and leasing services for motor vehicles; and personal loans, business loans, and loans against property to individuals and corporate bodies. This division also provides fixed deposit schemes and safe deposit locker facilities. The Microcredit division offers loans to low-income households. This division provides income generation loans, loans to rickshaw pullers, Islamic Microcredit, and microfinance housing. The Alternate Energy division owns and operates 2.4 MW wind energy generation unit located in Vani Vilas Sagar at Chitradurga, Karnataka; and 0.8 MW wind energy generation unit located at Bhu/Kita, Jaisalmer, Rajasthan.
SEIL Microfin Ltd was incorporated on March 5, 1992 as a private limited company with the name SE Investment Ltd. In March 1, 1995, the company was converted into a public limited company. Starting from July 2001, the company entered the business of extending loans and advances against security of specific assets specially vehicles and/or property. In December 2003, they took personal loan segment.
During the year 2005-06, the company forayed into new vistas and entered in extending personal loans and advanced to individuals belonging to weaker sections. They opened their new branch offices at Jaipur, Ahmedabad and Jodhpur. The company set up 0.80 MW Wind Energy Generator (WEG) in Jaisalmer, Rajasthan. Also, they made a tie-up with concerned State Electricity Boards for the sale of power generated through their WEG's. During the year 2007-08, the company shares are listed on Bombay Stock Exchange Ltd with effect from October 11, 2007.
During the year 2008-09, the company started finance scheme for the benefit of rickshaw pullers. By this scheme, a rickshaw puller can finance the rickshaw from the Company and can conveniently repay the loan amount in the daily installments of Rs 30 each for 400 days with weekly off. The company along with Unnati Financial Services Pvt Ltd set up bio power plants. The main raw material is gobar (dung) and bio waste.
During the year 2009-10, as per the scheme of amalgamation, Unnati Financial Services Pvt Ltd merged with the company with effect from August 31, 2008. In July 2010, the name of the company was changed from SE Investments Ltd to SEIL Microfin Ltd to highlight the company's core expertise in microfinance.
On 25th April, 2009, the erstwhile Unnati Financial Services Private Limited was amalgamated with the Company through Scheme of Amalgamation sanctioned by Delhi High Court vide its order dated 24th Sep. 2009, which became effective on 4th Nov. 2009 and consequently, the assets and liabilities of erstwhile Unnati Financial Services Private Limited stand transferred to and vested in the Company with effect from the appointed date i.e. 31st Aug. 2008.
During the year 2010-11, the Scheme of Arrangement amongst M/s S. E. Investments Ltd. (Transferor Company) (presently known as Paisalo Digital Ltd), M/s S. E. Power Ltd. (Transferee Company) and their Respective Shareholders was approved on 19th November, 2010, which became effective from September 30, 2010, the Appointed Date of the said Scheme.
During FY 2015-16, the Company opened 9 new branches in the State of Rajasthan; in 2016-17 opened 4 new branches in the state of Uttar Pradesh and started operations from Indri in Haryana.
On February 23, 2018 Agarwal Meadows Private Limited (Transferor Company) was amalgamated with Paisalo Digital Limited (Transferee Company) through Scheme of Amalgamation sanctioned by the Tribunal at New Delhi vide its order dated May 17, 2019 and pursuant to the said Scheme as sanctioned by the Tribunal all the assets and liabilities of the Transferor Company had been transferred and vested in the Transferee Company with effect from December 31, 2017.
Paisalo Digital share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Paisalo Digital indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Paisalo Digital is valued compared to its competitors.
Paisalo Digital PE ratio helps investors understand what is the market value of each stock compared to Paisalo Digital 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Paisalo Digital evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Paisalo Digital generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Paisalo Digital in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Paisalo Digital shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Paisalo Digital compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Paisalo Digital over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Paisalo Digital helps investors get an insight into when they can enter or exit the stock. Key components of Paisalo Digital Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Paisalo Digital shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Paisalo Digital ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Paisalo Digital provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Paisalo Digital highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Paisalo Digital .
The balance sheet presents a snapshot of Paisalo Digital ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
Paisalo Digital Net Interest Margin (NIM) tells about the profitability earned by all NBFCs and financial institutions. It represents the income generated by the bank from the difference between the interest earned on loans and the interest paid on public deposits. Net Interest Margin (NIM) is a metric that monitors the profitability generated from a bank's lending activities.
Non-Performing Assets (NPA) indicate the ratio of a bank's loans that are classified as non-performing. A lower NPA ratio reflects stronger asset quality and more effective risk management.
Capital Adequacy Ratio (CAR) is a metric to measure the bank's ability to absorb losses and still remain financially stable. A higher CAR shows that the bank is financially sound and can absorb potential losses.
Gross NPA is the percentage of total non-performing loans before provisioning, while net NPA is the percentage after provisioning. Lower gross and net NPA ratios indicate better loan quality.
Net NPA is the actual losses a bank has incurred due to NPA accounts. Lower the NPA, better the banks can maintain stable income from interest on loans.
CASA ratio tells how much of a bank's total deposits are in both current and savings accounts.
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