Paisalo Digital shares extend fall, slump 41% in 3 sessions

Shares of Paisalo Digital Ltd continued their fall for the third straight session in Wednesday's trade. The stock today dived 19.93 per cent to hit a day low of Rs 111.90. At this price, it has crashed 40.90 per cent in just three days. Around 4.55 lakh shares were seen changing hands on BSE today. The figure was higher than the two-week average volume of 3.47 lakh shares.

The shadow lender has recently issued a clarification over "unfair lending practices." Paisalo said there's no order directing any regulator to investigate any unfair lending practices by the Delhi High Court.

"A defaulter named M/s Sat Priya Mehamia Memorial Educational Trust, Rohtak borrowed an amount of Rs 12 crore on March 24, 2018. The defaulter has only made a payment of Rs 25 lakh. The defaulter and its office bearers are involved in selling off the land mortgaged to us. The company has treated this as a loss asset in September 2019 in its books of accounts by providing 100 per cent. We have initiated various legal actions against the borrower and its office bearers including registering FIR. The defaulter violates the Delhi HC order dated January 23, 2024, to maintain the status-quo as to title and possession in respect of the mortgaged properties. But despite such court orders, the defaulting entity has continued its process of illegally disposing of the mortgaged properties. The high court has only ordered to Issue notice and reply to be submitted in four weeks," it stated.

Bourses BSE and NSE have put the securities of Paisalo under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices. The stock will trade ex-bonus on March 20 in a 1:1 ratio.

As of December 2023, promoters held a 48.86 per cent stake in the company. The counter was trading lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 33.89. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 39.11 against a price-to-book (P/B) value of 5.09. Earnings per share (EPS) stood at 3.57 with a return on equity of 13.