Prime Securities Limited (PRIMESECU) AI Stock Analysis

• Market Cap: ₹9.25B
• Dividend Yield: 0.51%
• Average Volume (3M): 7.34K
• Price to Earnings (P/E): 111.4
• Beta (1Y): 1.05
• Revenue Growth: 34.10%
• EPS Growth: -15.20%
• Country: IN
• Employees: 19
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.62
• Shares Outstanding: 33,900,326
• 10 Day Avg. Volume: 17,282
• 30 Day Avg. Volume: 7,339
• PEG Ratio: 0.21
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 10.28
• P/FCF Ratio: 36.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹306.00 ▲(11.21% Upside)
• Action: Upgraded Date: 11/05/25
• Date: Action: Upgraded 11/05/25

Prime Securities Limited's strong financial performance and positive technical indicators are the primary drivers of its score. However, the high P/E ratio and low dividend yield suggest valuation concerns, slightly tempering the overall outlook. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Revenue Growth

Sustained revenue growth near 39% indicates expanding client activity and product uptake in the core capital markets business. Over a multi-month horizon this top-line momentum supports reinvestment, scale benefits, and provides a durable buffer for operating leverage if management sustains client acquisition and retention.

High Profitability

Very strong margins and a double-digit ROE show durable operational efficiency and capital productivity in the business model. High gross and net margins imply low variable costs per transaction and pricing power, which support sustainable free cash generation and shareholder returns under stable market activity.

Robust Cash Generation

Large free cash flow growth and solid operating cash conversion demonstrate the firm's ability to convert earnings into cash. Persistent strong FCF supports capital allocation flexibility—debt reduction, strategic investment, or reserves—which strengthens the company’s financial durability over the medium term.

Negative Factors

EPS Contraction

A substantial decline in EPS despite revenue growth signals potential margin pressure, one-off costs, or share-base changes that could repeat. Over 2-6 months this raises questions about earnings quality and sustainability, and suggests monitoring profit drivers, cost structure, and any non-operating impacts on reported EPS.

Cash Reserves Pressure

The balance-sheet note on falling cash balances points to potential liquidity pressure or elevated cash deployment. If sustained, lower cash buffers reduce flexibility for market stress, dampen the ability to invest opportunistically, and increase reliance on external funding for growth or volatility management.

Limited Scale / Liquidity

A very small workforce and low trading volume indicate limited operational scale and market liquidity. Structurally, this can constrain client coverage, product expansion, and ability to absorb larger flows or compete for institutional mandates, slowing growth and making results more sensitive to key-person or client concentration risks.

Prime Securities Limited Business Overview & Revenue Model

Company Description

Prime Securities Limited provides corporate advisory and investment banking services in India. It offers corporate advisory services that include financial advisory for debt and capital structuring; strategic, business, and value enhancement; mergers and acquisitions, and stake sales; and structured debt placement/loan syndications. The company also engages in the debt/equity/capital restructurings/loan re-organization activities; and provision of listed equity services, such as initial public offerings (IPO), qualified institutions placements, and rights issues/buybacks/open offers/preferential allotments, as well as local advisory to overseas offerings/foreign entrants. In addition, it offers unlisted equity services that include pre-IPO placements/PIPEs, private equity, and exits/strategic alliances/JVs. Prime Securities Limited was incorporated in 1982 and is headquartered in Mumbai, India.

How the Company Makes Money

null

Prime Securities Limited Financial Statement Overview

Summary

Prime Securities Limited has shown remarkable financial performance with robust revenue growth, strong profitability, and efficient cash management. The balance sheet remains stable with low leverage, and the company efficiently converts its income into cash. The financial health is solid, although monitoring cash reserves is advisable.

Income Statement

Prime Securities Limited has demonstrated impressive growth in its revenue and profitability over the years. The company achieved a Gross Profit Margin of 100%, indicating efficient cost management. The Net Profit Margin improved significantly from previous years, reaching 42.9% in the latest period, showcasing strong profitability. Revenue growth has been robust, with a notable increase from the previous year. Additionally, the EBIT and EBITDA margins are strong, reflecting efficient operations.

Balance Sheet

The balance sheet of Prime Securities Limited is robust, with a low Debt-to-Equity Ratio of 0.016, indicating low leverage and financial stability. The Return on Equity is impressive at 18.6%, highlighting effective use of shareholder funds. The Equity Ratio stands at a healthy 89.4%, suggesting a solid capital structure. However, a decrease in cash and equivalents could be a potential risk.

Cash Flow

Cash flow analysis shows strong performance with the Free Cash Flow increasing significantly, resulting in a Free Cash Flow Growth Rate of 74.8%. The Operating Cash Flow to Net Income Ratio of 0.73 reflects stable cash generation relative to income. The company maintains a healthy Free Cash Flow to Net Income Ratio of 0.59, demonstrating effective cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.06B	798.00M	615.10M	405.40M	415.40M	406.90M
Gross Profit	748.80M	444.50M	286.60M	177.60M	236.90M	181.50M
EBITDA	367.00M	461.70M	248.00M	168.80M	227.20M	123.20M
Net Income	332.50M	383.00M	185.60M	111.80M	169.80M	82.10M
Balance Sheet
Total Assets	2.59B	2.30B	1.77B	1.41B	1.31B	814.20M
Cash, Cash Equivalents and Short-Term Investments	71.90M	568.20M	532.80M	583.30M	157.80M	385.20M
Total Debt	16.60M	33.70M	9.20M	15.50M	72.70M	27.60M
Total Liabilities	291.90M	242.30M	193.20M	138.90M	192.60M	242.10M
Stockholders Equity	2.30B	2.06B	1.58B	1.27B	1.11B	572.00M
Cash Flow
Free Cash Flow	-182.80M	226.60M	129.60M	-56.30M	-7.20M	250.50M
Operating Cash Flow	-128.10M	278.60M	131.50M	-52.80M	11.90M	259.00M
Investing Cash Flow	196.30M	-260.90M	-180.20M	34.50M	-476.30M	-125.60M
Financing Cash Flow	-35.20M	-13.00M	37.90M	-60.40M	337.30M	-2.30M

Prime Securities Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 275.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRIMESECU, the sentiment is Negative. The current price of 275.15 is below the 20-day moving average (MA) of 277.94, below the 50-day MA of 276.89, and below the 200-day MA of 278.64, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 50.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PRIMESECU.

Prime Securities Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRIMESECU	74 Outperform	₹9.25B	111.43	―	0.51%	34.10%	-15.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSLFINANCE	66 Neutral	₹5.50B	8.12	―	0.93%	17.32%	13.66%
BIRLAMONEY	63 Neutral	₹6.60B	14.15	―	―	-6.37%	-24.10%
VLSFINANCE	61 Neutral	₹7.05B	14.11	―	0.52%	-98.34%	-106.71%
THEINVEST	59 Neutral	₹4.95B	13.06	―	―	-9.21%	-48.40%
ARIHANTCAP	58 Neutral	₹7.60B	45.88	―	0.53%	-27.65%	-44.96%

Prime Securities Limited Corporate Events

Prime Securities Posts Unaudited Q3 and Nine-Month FY2025 Results

Prime Securities Limited has released its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, in compliance with Indian securities listing regulations. The figures, which incorporate the group’s performance including its subsidiaries and share of loss in an associate, have been reviewed by independent auditors under a limited review and were examined by the Audit Committee before being approved and taken on record by the Board of Directors at its 20 January 2026 meeting, providing investors and other stakeholders with updated interim financial information on the company’s operations.

Prime Securities’ Revenues Cross ₹100 Crore as Wealth Arm Scales Up, Margins Tighten on Expansion Costs

Prime Securities reported that its consolidated revenues crossed INR 100 crore for the first time in the nine months ended 31 December 2025, driven by strong growth in its investment banking and newly scaled-up wealth management verticals. Total income for the period rose to INR 10,787 lakh from INR 7,893 lakh a year earlier, while fees and commission income surged to INR 9,834 lakh, but profit after tax declined to INR 2,635 lakh from INR 3,750 lakh as total expenses more than doubled, largely due to a sharp rise in employee costs and an estimated annual fixed outlay of about INR 50 crore to build Prime Trigen Wealth. Group headcount nearly tripled to 120, and Prime Trigen Wealth, now operating from eight locations with over 90 employees, has crossed INR 2,400 crore in assets under advisory, onboarding more than 725 clients and 360 families in its first nine months. The company is pursuing a strategy of expanding annuity-style revenue from franchise businesses like wealth management to reduce the inherent lumpiness of investment banking fees and reports a steady increase in the number and size of advisory deals, reinforcing its positioning for longer-term growth despite near-term margin pressure.