Equity research firm Evaluate Research has reiterated its “Buy” rating on Paisalo Digital Ltd, maintaining a price target of ₹75, implying an upside of over 100% from current levels, making it a multibagger stock.
The research firm believes the target is achievable, noting that the stock had previously touched ₹100 in March 2024 and crossed the $1 billion market capitalisation milestone.
Currently trading at ₹34.21 on the BSE, the stock remains near its one-year lows, which Evaluate Research views as an attractive entry point and potential inflection zone.
A reversion to its 2024 highs could translate into nearly 2x returns. The firm also highlighted Paisalo’s strong investor communication practices, including detailed disclosures and regular conference calls accompanying its financial results, according to the research firm.
Evaluate Research considers the stock to be a strong long-term investment that is likely to gain from India’s ongoing growth narrative. Furthermore, it still perceive Paisalo, in terms of its earnings potential and stock value, as being in the early stages of its corporate journey [even with its 33 years of existence] and having significant growth opportunities in the future.
“We are justifying our ₹75 price target using a 24x P/E multiple on our ₹3.11 EPS estimate [which we believe may ultimately prove to be conservative] for forward FY 03/2027. In our view, Paisalo’s above-industry growth prospects, and the current multiples of fast growing NBFC/banks, justify our valuation methodology,” said the equity firm.
Evaluate Research continues to view Paisalo Digital Ltd as a compelling long-term buy-and-hold opportunity. The firm expects Paisalo’s organic growth in both revenue and net income to outpace the single-digit growth outlook typically associated with the broader banking and NBFC sector. Given its mid-cap positioning and expanding balance sheet, further upside appears plausible.
Evaluate Research also noted that the company has entered a phase of rapid expansion after years of scaling and consolidating its capabilities and infrastructure, positioning it well for sustained growth ahead.
Paisalo Digital – Q3 results review
Evaluate Research stated that following Q3 earnings, and factoring in the diluted share count from FCCB conversion, it has maintained its FY2026 EPS estimate for Paisalo Digital Ltd at ₹2.65, while keeping FY2027 estimates unchanged at ₹3.11.
Based on the company’s stated three-year growth targets, the research firm believes its FY2027 projections could prove conservative. At the current market price, the stock is trading at attractive valuations, with a P/E of 13.1x for FY2026 and 11.2x for FY2027, indicating reasonable upside potential.
Paisalo Digital share price today
Paisalo Digital share price today opened at ₹33.98 apiece on the BSE. According to Mehul Kothari, Depity Vice President — Technical Research at Anand Rathi, Paisalo Digital shares have crucial support at ₹30, and the NBFC stock is racing a hurdle at ₹36. It is currently in the oversold zone and is looking set for a trend reversal on the technical chart. However, for a fresh uptrend, it needs to close above ₹36 to boost the bulls’ conviction.
“So, one can buy this NBFC stock at current levels, maintaining a strict stop loss below ₹30. Those with a low-risk appetite are advised to buy the stock at prices above ₹38,” said Kothari.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
