{"id":301587,"date":"2026-10-12T11:43:42","date_gmt":"2026-10-12T06:13:42","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=301587"},"modified":"2026-10-12T11:43:42","modified_gmt":"2026-10-12T06:13:42","slug":"underserved-borrower-lending-stocks-roadmap-picks-2027","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/","title":{"rendered":"3 Underserved Borrower Lending Stocks With a Strong Future Roadmap: Paisalo Digital, Northern Arc Capital and Shriram Finance"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>Paisalo Digital Rs 80.90, P\/E 29.35. Northern Arc Rs 281.45, P\/E 10.35. Shriram Finance Rs 940.45, P\/E 19.13. Closing prices of 9 Oct 2026.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">Underserved borrower lending stocks with the clearest long-term roadmaps today include Paisalo Digital in digital co-lending model, Northern Arc in funding platform for lenders and Shriram Finance in commercial vehicle loan franchise. FY26 revenue growth was 22.4% at Paisalo Digital, 14.6% at Northern Arc and 15.1% at Shriram Finance. P\/E stands at 29.35 for Paisalo Digital (industry 17.72), 10.35 for Northern Arc (industry 17.72) and 19.13 for Shriram Finance (industry 17.72). Demand cycles, input costs and valuation decide how much of that growth the market keeps paying for, so each company&#8217;s risks need equal attention.<\/p>\n<\/p><\/div>\n<p>Underserved borrower lending stocks give investors exposure to credit for borrowers that banks serve less. Disbursements, collections and funding costs decide how much of that demand turns into profit.<\/p>\n<p>This list covers three underserved borrower lending stocks: Paisalo Digital for digital co-lending model, Northern Arc Capital for funding platform for lenders and Shriram Finance for commercial vehicle loan franchise. Every figure comes from the latest reported financials and the 9 October 2026 market close. Companies without complete current figures were left out.<\/p>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=underserved-borrower-lending-stocks-roadmap-picks-2027\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#What_Are_Underserved_Borrower_Lending_Stocks\" title=\"What Are Underserved Borrower Lending Stocks?\">What Are Underserved Borrower Lending Stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Underserved_Borrower_Lending_Stocks_at_a_Glance\" title=\"Underserved Borrower Lending Stocks at a Glance\">Underserved Borrower Lending Stocks at a Glance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Why_Do_Underserved_Borrower_Lending_Stocks_Have_a_Strong_Roadmap_in_India\" title=\"Why Do Underserved Borrower Lending Stocks Have a Strong Roadmap in India?\">Why Do Underserved Borrower Lending Stocks Have a Strong Roadmap in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Paisalo_Digital_Digital_Co-Lending_Builds_the_Next_Leg\" title=\"Paisalo Digital: Digital Co-Lending Builds the Next Leg\">Paisalo Digital: Digital Co-Lending Builds the Next Leg<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Northern_Arc_Capital_A_Funding_Platform_for_Lenders_Builds_the_Next_Leg\" title=\"Northern Arc Capital: A Funding Platform for Lenders Builds the Next Leg\">Northern Arc Capital: A Funding Platform for Lenders Builds the Next Leg<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Shriram_Finance_Commercial_Vehicle_Finance_Anchors_the_Roadmap\" title=\"Shriram Finance: Commercial Vehicle Finance Anchors the Roadmap\">Shriram Finance: Commercial Vehicle Finance Anchors the Roadmap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Best_Underserved_Borrower_Lending_Stocks_in_India_Paisalo_Digital_vs_Northern_Arc_vs_Shriram_Finance_on_Key_Financials\" title=\"Best Underserved Borrower Lending Stocks in India: Paisalo Digital vs Northern Arc vs Shriram Finance on Key Financials\">Best Underserved Borrower Lending Stocks in India: Paisalo Digital vs Northern Arc vs Shriram Finance on Key Financials<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#How_to_Evaluate_Underserved_Borrower_Lending_Stocks_to_Buy_Before_You_Invest\" title=\"How to Evaluate Underserved Borrower Lending Stocks to Buy Before You Invest\">How to Evaluate Underserved Borrower Lending Stocks to Buy Before You Invest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Risks_to_Consider_Before_Investing_in_Underserved_Borrower_Lending_Stocks\" title=\"Risks to Consider Before Investing in Underserved Borrower Lending Stocks\">Risks to Consider Before Investing in Underserved Borrower Lending Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Final_Take_Which_Stock_Has_the_Strongest_Roadmap\" title=\"Final Take: Which Stock Has the Strongest Roadmap?\">Final Take: Which Stock Has the Strongest Roadmap?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#FAQs_on_Underserved_Borrower_Lending_Stocks\" title=\"FAQs on Underserved Borrower Lending Stocks\">FAQs on Underserved Borrower Lending Stocks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Which_are_the_best_underserved_borrower_lending_stocks_in_India_with_a_strong_roadmap\" title=\"Which are the best underserved borrower lending stocks in India with a strong roadmap?\">Which are the best underserved borrower lending stocks in India with a strong roadmap?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Is_Paisalo_Digital_a_good_stock_to_buy_now\" title=\"Is Paisalo Digital a good stock to buy now?\">Is Paisalo Digital a good stock to buy now?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#What_is_the_PE_ratio_of_Paisalo_Digital_Northern_Arc_and_Shriram_Finance\" title=\"What is the P\/E ratio of Paisalo Digital, Northern Arc and Shriram Finance?\">What is the P\/E ratio of Paisalo Digital, Northern Arc and Shriram Finance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Which_of_these_underserved_borrower_lending_stocks_has_the_highest_return_on_equity\" title=\"Which of these underserved borrower lending stocks has the highest return on equity?\">Which of these underserved borrower lending stocks has the highest return on equity?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#What_are_the_risks_of_investing_in_underserved_borrower_lending_stocks\" title=\"What are the risks of investing in underserved borrower lending stocks?\">What are the risks of investing in underserved borrower lending stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#How_did_Paisalo_Digital_Northern_Arc_and_Shriram_Finance_perform_in_Q1_FY27\" title=\"How did Paisalo Digital, Northern Arc and Shriram Finance perform in Q1 FY27?\">How did Paisalo Digital, Northern Arc and Shriram Finance perform in Q1 FY27?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#Do_underserved_borrower_lending_stocks_pay_dividends\" title=\"Do underserved borrower lending stocks pay dividends?\">Do underserved borrower lending stocks pay dividends?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/underserved-borrower-lending-stocks-roadmap-picks-2027\/#How_can_I_invest_in_underserved_borrower_lending_stocks_in_India\" title=\"How can I invest in underserved borrower lending stocks in India?\">How can I invest in underserved borrower lending stocks in India?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Underserved_Borrower_Lending_Stocks\"><\/span><strong>What Are Underserved Borrower Lending Stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Underserved borrower lending stocks are shares of companies that lend to or fund borrowers that banks serve less. Results depend on loan growth, collections and funding costs, so collections and funding costs separate the stronger names.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Underserved_Borrower_Lending_Stocks_at_a_Glance\"><\/span><strong>Underserved Borrower Lending Stocks at a Glance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The table compares size, valuation, return on equity and debt for the three underserved borrower lending stocks as of the 9 Oct 2026 close.<\/p>\n<div style=\"overflow-x:auto;\">\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Company<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">CMP (Rs)<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Market Cap (Rs Cr)<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">P\/E<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Industry P\/E<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">ROE<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Debt to Equity<\/th>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\"><a href=\"https:\/\/univest.in\/stocks\/paisalo\/paisalo-digital-ltd-share-price-today\">Paisalo Digital<\/a><\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">80.90<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">7,378<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">29.35<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">17.72<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">13.23%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">2.43<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\"><a href=\"https:\/\/univest.in\/stocks\/northarc\/northern-arc-capital-ltd-share-price-today\">Northern Arc Capital<\/a><\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">281.45<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">4,549<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">10.35<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">17.72<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">10.42%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">3.15<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\"><a href=\"https:\/\/univest.in\/stocks\/shriramfin\/shriram-transport-finance-company-ltd-share-price-today\">Shriram Finance<\/a><\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">940.45<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">216,480<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">19.13<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">17.72<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">15.21%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">3.80<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>Among inclusive finance stocks, Paisalo Digital and Shriram Finance trade at a premium to the industry P\/E, while Northern Arc trades at a discount.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Do_Underserved_Borrower_Lending_Stocks_Have_a_Strong_Roadmap_in_India\"><\/span><strong>Why Do Underserved Borrower Lending Stocks Have a Strong Roadmap in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Underserved borrower lending stocks have a strong roadmap in India because many small borrowers lack formal records, banks are partnering with non-bank lenders and funding platforms link investors to small lenders. Three drivers stand out.<\/p>\n<ul>\n<li><strong>Co-lending with banks:<\/strong> Partnerships with banks lower funding costs and widen reach.<\/li>\n<li><strong>Funding for smaller lenders:<\/strong> Platforms that arrange funds for small lenders widen credit reach.<\/li>\n<li><strong>Local underwriting:<\/strong> Lenders that know their borrowers earn better yields.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Paisalo_Digital_Digital_Co-Lending_Builds_the_Next_Leg\"><\/span><strong>Paisalo Digital: Digital Co-Lending Builds the Next Leg<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Paisalo Digital&#8217;s roadmap rests on small-ticket loans to underserved borrowers through a digital and co-lending model, with a low-ticket lending model supporting growth.<\/p>\n<p>Revenue grew from Rs 392.22 crore in FY22 to Rs 943.70 crore in FY26, a 140.6% rise, and FY26 revenue was 22.4% higher than FY25. FY26 net profit rose 18.5% to Rs 237.21 crore. Over four years, net profit rose from Rs 79.25 crore in FY22 to Rs 237.21 crore. In Q1 FY27, revenue grew 19.0% to Rs 260.29 crore, and net profit rose 30.0% to Rs 61.31 crore.<\/p>\n<p>Debt to equity is 2.43 and return on equity is 13.23%. Paisalo Digital paid a dividend of Rs 0.1 per share for FY26, a yield of 0.12%. At a P\/E of 29.35 against an industry P\/E of 17.72, the stock trades above its industry multiple.<\/p>\n<p>What to watch: The P\/E of 29.35 sits above the industry P\/E of 17.72, so earnings delivery matters for the valuation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Northern_Arc_Capital_A_Funding_Platform_for_Lenders_Builds_the_Next_Leg\"><\/span><strong>Northern Arc Capital: A Funding Platform for Lenders Builds the Next Leg<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Northern Arc&#8217;s roadmap rests on funding for microfinance, vehicle finance and small business lenders along with direct loans, with its funding platform supporting growth.<\/p>\n<p>Revenue grew from Rs 916.54 crore in FY22 to Rs 2,700.33 crore in FY26, a 194.6% rise, and FY26 revenue was 14.6% higher than FY25. FY26 net profit rose 33.9% to Rs 403.58 crore. Over four years, net profit rose from Rs 181.94 crore in FY22 to Rs 403.58 crore. In Q1 FY27, revenue grew 28.8% to Rs 782.82 crore, and net profit rose 45.8% to Rs 114.10 crore.<\/p>\n<p>Debt to equity is 3.15 and return on equity is 10.42%. At a P\/E of 10.35 against an industry P\/E of 17.72, the stock trades below its industry multiple.<\/p>\n<p>What to watch: The P\/E of 10.35 against an industry P\/E of 17.72 leaves valuation less stretched, so the next quarters&#8217; growth is the figure to follow.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Shriram_Finance_Commercial_Vehicle_Finance_Anchors_the_Roadmap\"><\/span><strong>Shriram Finance: Commercial Vehicle Finance Anchors the Roadmap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Shriram Finance&#8217;s roadmap rests on commercial vehicle, used vehicle, small business and gold loans for customers that banks often serve less, with demand for transport and small business credit supporting loan growth.<\/p>\n<p>Revenue grew from Rs 19,274.23 crore in FY22 to Rs 48,192.65 crore in FY26, a 150.0% rise, and FY26 revenue was 15.1% higher than FY25. FY26 net profit rose 6.2% to Rs 10,004.20 crore. Over four years, net profit rose from Rs 2,707.93 crore in FY22 to Rs 10,004.20 crore. In Q1 FY27, revenue grew 16.3% to Rs 13,418.74 crore, and net profit rose 60.0% to Rs 3,447.26 crore.<\/p>\n<p>Debt to equity is 3.80 and return on equity is 15.21%. Shriram Finance paid a dividend of Rs 10.8 per share for FY26, a yield of 0.94%. At a P\/E of 19.13 against an industry P\/E of 17.72, the stock trades above its industry multiple.<\/p>\n<p>What to watch: The P\/E of 19.13 is a modest premium to the industry P\/E of 17.72, so the next quarters&#8217; growth is the figure to follow.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Best_Underserved_Borrower_Lending_Stocks_in_India_Paisalo_Digital_vs_Northern_Arc_vs_Shriram_Finance_on_Key_Financials\"><\/span><strong>Best Underserved Borrower Lending Stocks in India: Paisalo Digital vs Northern Arc vs Shriram Finance on Key Financials<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Among the best underserved borrower lending stocks in India, Paisalo Digital leads on FY26 revenue growth and the lowest debt to equity; Northern Arc leads on Q1 FY27 revenue growth and FY26 net profit growth; Shriram Finance leads on Q1 FY27 net profit growth and return on equity. The table puts the numbers side by side.<\/p>\n<div style=\"overflow-x:auto;\">\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Metric<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Paisalo Digital<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Northern Arc<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Shriram Finance<\/th>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 revenue (Rs Cr)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">943.70<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">2,700.33<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">48,192.65<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 revenue growth<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">22.4%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">14.6%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">15.1%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 net profit (Rs Cr)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">237.21<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">403.58<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">10,004.20<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 net profit growth<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">18.5%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">33.9%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">6.2%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Q1 FY27 revenue growth (YoY)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">19.0%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">28.8%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">16.3%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Q1 FY27 net profit growth (YoY)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">30.0%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">45.8%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">60.0%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Return on equity<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">13.23%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">10.42%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">15.21%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">P\/E ratio<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">29.35<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">10.35<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">19.13<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Debt to equity<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">2.43<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">3.15<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">3.80<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Dividend yield<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.12%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.00%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.94%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>Lender earnings follow loan growth, collections and funding costs, so full-year numbers and quarterly trends together give a better view.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Evaluate_Underserved_Borrower_Lending_Stocks_to_Buy_Before_You_Invest\"><\/span><strong>How to Evaluate Underserved Borrower Lending Stocks to Buy Before You Invest<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A short checklist keeps the research consistent when you screen underserved borrower lending stocks and shortlist underserved borrower lending stocks to buy.<\/p>\n<ol>\n<li>Compare each stock&#8217;s P\/E with its industry P\/E, which is 17.72 for all three here.<\/li>\n<li>Check the quality of collections and how much funding comes from banks, because both shape stability.<\/li>\n<li>Check whether revenue growth is turning into profit growth, not only sales.<\/li>\n<li>Read loan growth against funding costs to see how growth is financed.<\/li>\n<li>Watch debt to equity and interest cover before sizing a position.<\/li>\n<li>Spread exposure across companies and business lines instead of one demand cycle.<\/li>\n<\/ol>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/screeners\"><strong>Check the Univest Screener for live data on these underserved borrower lending stocks<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_to_Consider_Before_Investing_in_Underserved_Borrower_Lending_Stocks\"><\/span><strong>Risks to Consider Before Investing in Underserved Borrower Lending Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Valuation:<\/strong> Paisalo Digital trades at 29.35 times earnings against an industry multiple of 17.72.<\/li>\n<li><strong>Interest rate cycles:<\/strong> Changes in policy rates can move borrowing costs and lending spreads.<\/li>\n<li><strong>Borrower income stress:<\/strong> Small borrowers can face uneven cash flows in a slow economy.<\/li>\n<li><strong>Quarterly trends:<\/strong> A single weak quarter can change near-term earnings, so track results every quarter.<\/li>\n<\/ul>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track Paisalo Digital, Northern Arc and Shriram Finance live.<\/em><\/p>\n<p>Annual reports and quarterly result presentations are the most reliable places to verify the numbers quoted here, because they show segment details, management commentary and the notes behind each figure.<\/p>\n<p>Comparing a quarter with the same quarter of the previous year gives a cleaner reading than comparing it with the preceding quarter, since seasonal patterns affect many businesses in India.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Final_Take_Which_Stock_Has_the_Strongest_Roadmap\"><\/span><strong>Final Take: Which Stock Has the Strongest Roadmap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>These three inclusive finance stocks cover a digital co-lending company, a platform that funds small lenders and a commercial vehicle lender. Paisalo Digital leads on FY26 revenue growth and the lowest debt to equity; Northern Arc leads on Q1 FY27 revenue growth and FY26 net profit growth; Shriram Finance leads on Q1 FY27 net profit growth and return on equity.<\/p>\n<p>Across underserved borrower lending stocks, each roadmap still has to turn growth into steady profit, so independent research and position sizing matter. Investors should consult a SEBI-registered advisor before acting on any of the underserved borrower lending stocks to buy discussed here.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_on_Underserved_Borrower_Lending_Stocks\"><\/span><strong>FAQs on Underserved Borrower Lending Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_are_the_best_underserved_borrower_lending_stocks_in_India_with_a_strong_roadmap\"><\/span><strong>Which are the best underserved borrower lending stocks in India with a strong roadmap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Paisalo Digital, Northern Arc Capital and Shriram Finance stand out for their roadmaps in a digital co-lending company, a platform that funds small lenders and a commercial vehicle lender. FY26 revenue growth was 22.4% at Paisalo Digital, 14.6% at Northern Arc and 15.1% at Shriram Finance, and return on equity ranges from 10.42% to 15.21%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Paisalo_Digital_a_good_stock_to_buy_now\"><\/span><strong>Is Paisalo Digital a good stock to buy now?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Paisalo Digital has a debt to equity ratio of 2.43, a return on equity of 13.23% and a P\/E of 29.35 against an industry P\/E of 17.72. Valuation, funding costs and repayment trends move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_PE_ratio_of_Paisalo_Digital_Northern_Arc_and_Shriram_Finance\"><\/span><strong>What is the P\/E ratio of Paisalo Digital, Northern Arc and Shriram Finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The P\/E ratio is 29.35 for Paisalo Digital (industry 17.72), 10.35 for Northern Arc (industry 17.72) and 19.13 for Shriram Finance (industry 17.72). Only Paisalo Digital and Shriram Finance trade at or above the industry multiple.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_of_these_underserved_borrower_lending_stocks_has_the_highest_return_on_equity\"><\/span><strong>Which of these underserved borrower lending stocks has the highest return on equity?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Shriram Finance has the highest return on equity at 15.21%, followed by Paisalo Digital at 13.23% and Northern Arc Capital at 10.42%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_risks_of_investing_in_underserved_borrower_lending_stocks\"><\/span><strong>What are the risks of investing in underserved borrower lending stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The main risks are valuation, interest rate cycles, borrower income stress and quarterly trends. Paisalo Digital trades at 29.35 times earnings against an industry multiple of 17.72.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_did_Paisalo_Digital_Northern_Arc_and_Shriram_Finance_perform_in_Q1_FY27\"><\/span><strong>How did Paisalo Digital, Northern Arc and Shriram Finance perform in Q1 FY27?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Paisalo Digital reported revenue of Rs 260.29 crore, up 19.0% year on year, and net profit rose 30.0% to Rs 61.31 crore. Northern Arc Capital reported revenue of Rs 782.82 crore, up 28.8% year on year, and net profit rose 45.8% to Rs 114.10 crore. Shriram Finance reported revenue of Rs 13,418.74 crore, up 16.3% year on year, and net profit rose 60.0% to Rs 3,447.26 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_underserved_borrower_lending_stocks_pay_dividends\"><\/span><strong>Do underserved borrower lending stocks pay dividends?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Paisalo Digital and Shriram Finance pay dividends. The dividend yield is 0.12% for Paisalo Digital and 0.94% for Shriram Finance, based on dividends declared for FY26.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_can_I_invest_in_underserved_borrower_lending_stocks_in_India\"><\/span><strong>How can I invest in underserved borrower lending stocks in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> You can buy underserved borrower lending stocks through a demat and trading account on NSE or BSE after checking each company&#8217;s financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Which are the best underserved borrower lending stocks in India with a strong roadmap?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Paisalo Digital, Northern Arc Capital and Shriram Finance stand out for their roadmaps in a digital co-lending company, a platform that funds small lenders and a commercial vehicle lender. FY26 revenue growth was 22.4% at Paisalo Digital, 14.6% at Northern Arc and 15.1% at Shriram Finance, and return on equity ranges from 10.42% to 15.21%.\"}},{\"@type\":\"Question\",\"name\":\"Is Paisalo Digital a good stock to buy now?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Paisalo Digital has a debt to equity ratio of 2.43, a return on equity of 13.23% and a P\/E of 29.35 against an industry P\/E of 17.72. Valuation, funding costs and repayment trends move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.\"}},{\"@type\":\"Question\",\"name\":\"What is the P\/E ratio of Paisalo Digital, Northern Arc and Shriram Finance?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The P\/E ratio is 29.35 for Paisalo Digital (industry 17.72), 10.35 for Northern Arc (industry 17.72) and 19.13 for Shriram Finance (industry 17.72). Only Paisalo Digital and Shriram Finance trade at or above the industry multiple.\"}},{\"@type\":\"Question\",\"name\":\"Which of these underserved borrower lending stocks has the highest return on equity?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Shriram Finance has the highest return on equity at 15.21%, followed by Paisalo Digital at 13.23% and Northern Arc Capital at 10.42%.\"}},{\"@type\":\"Question\",\"name\":\"What are the risks of investing in underserved borrower lending stocks?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The main risks are valuation, interest rate cycles, borrower income stress and quarterly trends. 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The dividend yield is 0.12% for Paisalo Digital and 0.94% for Shriram Finance, based on dividends declared for FY26.\"}},{\"@type\":\"Question\",\"name\":\"How can I invest in underserved borrower lending stocks in India?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"You can buy underserved borrower lending stocks through a demat and trading account on NSE or BSE after checking each company's financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Paisalo Digital, Northern Arc Capital and Shriram Finance compared on growth, margins, debt and valuation, with the roadmap and risks investors should track.<\/p>\n","protected":false},"author":35,"featured_media":301586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[845],"tags":[10964,11074,4870,11072,11073],"class_list":["post-301587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-stocks","tag-northern-arc-capital","tag-paisalo-digital","tag-shriram-finance","tag-underserved-borrower-lending-stocks","tag-underserved-borrower-lending-stocks-to-buy"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["301586"],"rank_math_title":["Underserved Borrower Lending Stocks: Top 3 Roadmap Picks"],"rank_math_description":["Underserved borrower lending stocks with a strong roadmap: Paisalo Digital, Northern Arc and Shriram Finance compared on growth, margins, valuation and risks."],"rank_math_focus_keyword":["underserved borrower lending stocks"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/3-underserved-borrower-lending-stocks-with-a-strong-future-roadmap-paisalo.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/301587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=301587"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/301587\/revisions"}],"predecessor-version":[{"id":301588,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/301587\/revisions\/301588"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/301586"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=301587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=301587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=301587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}