Shares of this small-cap stock jumps up to 8.40 percent after signing a Memorandum of Understanding (MoU) with a leading Automobile company based in India.
With a market capitalization of Rs 2,900 crores, the stocks of Paisalo Digital Limited opened their trading hour today at Rs 64.25 inching near their 52-week high levels recorded at a price of Rs 98.
The scrip witnessed an intra-day high of Rs 69.20, a gain of approximately 8.40 percent as compared to the previous closing levels of Rs 63.85 apiece.
The company, in a filing with the Bombay Stock Exchange today, announced that it has partnered with TVS Motor Company Limited for the purpose of financing three-wheelers under the category of ‘Internal Combustion Engine’ (ICE) vehicles and ‘Electric Vehicles’ (EV).
The partnership aims to cater to its customers with comparatively affordable financing alternatives in the three-wheeler market.
Coming onto the consolidated financials of the company, the operating revenues, as well as after-tax profits, increased sequentially with the former moving up from Rs 118 crores during Q4FY22-23 to Rs 136 crores during Q1FY23-24, and, the after-tax profits, moving from Rs 20 crores to Rs 38 crores.
The profitability metrics were on the rise as well with the return on equity (RoE) shifting from 7.76 percent during FY21-22 to 8.05 percent in FY22-23. Moreover, the return on capital employed (RoCE) took a shift from 19.06 percent to 27.84 percent during the same time horizon.
As per the latest shareholding pattern data available for the June 2023 quarter, the Promoters hold a 46.24 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 19.92 percent in the company.
Paisalo Digital Limited is a non-deposit-taking Non-Banking Finance Company (NBFC) based in India that is engaged in the provision of loans. The company’s product portfolio includes business loans, income-generation loans, loans for small and medium enterprises, etc. It lends to individuals, SMEs, and other trading, manufacturing, and service sector entities.
Written by Amit Madnani
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