Promoter Buying Boosts Paisalo Digital Shares

Paisalo Digital Limited (PDL), incorporated in 1992 and registered with the Reserve Bank of India (RBI) as a non-deposit Non-Banking Financial Company (NBFC), provides business loans to SMEs, corporates, and income generation loans to individuals. Led by founder promoter Mr. Sunil Agarwal, who has been the Managing Director since inception, the company has witnessed robust growth over the years.

Recent Stock Surge: What’s Driving the Buzz?

Shares of Paisalo Digital have been buzzing on the bourses, hitting an intraday high of Rs 63.40 and currently trading up by 2.13%. This surge can be attributed to two significant developments:

1. Promoter Group Acquisitions: The promoter group, Equilibrated Venture Cflow Private Limited, recently acquired 1,332,000 equity shares at an average price of Rs 60.6 through market purchases. This follows an earlier acquisition in August, where the group purchased 1,558,710 shares at an average price of Rs 62.4. Such promoter buying often signals confidence in the company’s prospects, attracting other investors.
2. Redemption of Commercial Papers: The company has fully redeemed and repaid unlisted commercial papers worth Rs 12 crore. This move strengthens the company’s financial position, potentially reducing debt obligations and improving investor sentiment.

Strong Financial Performance

In 2024, Paisalo Digital’s shares gained 34.4%, though they are marginally down by 2.88% in September. The company’s financial performance has shown a significant uptick, with the consolidated Assets Under Management (AUM) standing at Rs 4,586 crore in FY24, up from Rs 3,738.33 crore in FY23. This growth is driven by increased disbursements, which rose from Rs 2,599.60 crore in FY23 to Rs 3,590.24 crore in FY24.

Key Financial Highlights

• AUM Growth: PDL’s consolidated AUM increased to Rs 4,586 crore in FY24 from Rs 3,738.33 crore in FY23. This includes standalone AUMs of Rs 4,332 crore for PDL and Rs 254 crore for its subsidiary, NFPL.
• Net Interest Income (NII): Consolidated NII grew to Rs 318.91 crore in FY24 from Rs 262.08 crore in FY23, reflecting robust loan disbursements and effective interest income management.
• Profitability and Margins: Despite the growth in AUM and NII, consolidated profitability remained stable with a net interest margin (NIM) of 9.00% in FY24, slightly lower than the 9.13% in FY23.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.