Anand Rathi sees 31% Upside in this LIC-Owned Small-Cap NBFC Stock

Anand Rathi, a brokerage firm, sees a 31% upside in Paisalo Digital, a small-cap NBFC stock owned by LIC. Despite recent declines, the stock has shown resilience and potential for growth. Paisalo Digital’s share price dropped over 4% on Tuesday, extending its decline for the fourth consecutive session. The stock has fallen by 11% in the past month and 22% year-to-date. Over the last six months, it has declined by 38.5%, and nearly 50% over the past year. However, the stock has rallied 30% in two years and delivered multibagger returns of 195% in the past five years.

Anand Rathi recommends buying Paisalo Digital shares in the ₹37-₹39 range, with a target price of ₹50. The firm suggests a stop-loss at ₹32 to manage downside risk. The timeframe for this trade is one month. The stock recently completed a corrective leg near its previous breakout zone, aligning with strong support pivots, indicating a potential reversal.

Paisalo Digital shares hit a 52-week high of ₹99.63 on March 1, 2024, and a 52-week low of ₹38.10 on February 17, 2025. The stock’s current price reflects investor optimism about its growth prospects and recent business developments