WEBULL

5paisa Capital Limited (NSE:5PAISA) Stocks Shoot Up 27% But Its P/E Still Looks Reasonable

Simply Wall St · 5d ago

5paisa Capital Limited (NSE:5PAISA) shareholders would be excited to see that the share price has had a great month, posting a 27% gain and recovering from prior weakness. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 15% in the last twelve months.

In spite of the firm bounce in price, there still wouldn't be many who think 5paisa Capital's price-to-earnings (or "P/E") ratio of 25.4x is worth a mention when the median P/E in India is similar at about 26x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

For instance, 5paisa Capital's receding earnings in recent times would have to be some food for thought. One possibility is that the P/E is moderate because investors think the company might still do enough to be in line with the broader market in the near future. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.

See our latest analysis for 5paisa Capital

pe-multiple-vs-industry
NSEI:5PAISA Price to Earnings Ratio vs Industry January 8th 2026
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on 5paisa Capital's earnings, revenue and cash flow.

Is There Some Growth For 5paisa Capital?

There's an inherent assumption that a company should be matching the market for P/E ratios like 5paisa Capital's to be considered reasonable.

Retrospectively, the last year delivered a frustrating 25% decrease to the company's bottom line. Even so, admirably EPS has lifted 93% in aggregate from three years ago, notwithstanding the last 12 months. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.

It's interesting to note that the rest of the market is similarly expected to grow by 25% over the next year, which is fairly even with the company's recent medium-term annualised growth rates.

In light of this, it's understandable that 5paisa Capital's P/E sits in line with the majority of other companies. Apparently shareholders are comfortable to simply hold on assuming the company will continue keeping a low profile.

What We Can Learn From 5paisa Capital's P/E?

5paisa Capital's stock has a lot of momentum behind it lately, which has brought its P/E level with the market. Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

We've established that 5paisa Capital maintains its moderate P/E off the back of its recent three-year growth being in line with the wider market forecast, as expected. At this stage investors feel the potential for an improvement or deterioration in earnings isn't great enough to justify a high or low P/E ratio. Unless the recent medium-term conditions change, they will continue to support the share price at these levels.

Before you take the next step, you should know about the 1 warning sign for 5paisa Capital that we have uncovered.

If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.