Prime Securities Limited (PRIMESECU) AI Stock Analysis

• Market Cap: ₹9.32B
• Dividend Yield: 0.51%
• Average Volume (3M): 7.34K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 1.16
• 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: ₹297.00 ▲(7.94% Upside)

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 ~38.8% revenue growth demonstrates durable client acquisition and stronger fee/trading income. Over 2–6 months this supports scalable operating leverage and market share gains, improving reinvestment capacity into products, distribution and client servicing.

Strong Cash Generation

Significant FCF growth and healthy operating-cash-to-income conversion indicate high quality earnings and internal funding capability. This durable cash generation reduces dependency on external financing and supports capital allocation, dividends, or strategic investments over time.

Low Leverage and Capital Strength

Extremely low leverage and a high equity ratio provide balance-sheet resilience through market cycles. Combined with a strong ROE, this capital structure supports risk-taking in trading/advisory, cushions downturns, and preserves financial flexibility for long-term strategic moves.

Negative Factors

Declining EPS

A nearly 31% decline in EPS despite robust revenue growth signals pressure on earnings quality or one-off items. Persisting EPS contraction can erode retained earnings, limit reinvestment capacity, and weaken confidence in management's ability to translate top-line growth into sustainable per-share profitability.

Decreasing Cash Reserves

A noted decline in cash and equivalents reduces the firm's liquidity buffer. For a capital-markets operator this can constrain margin requirements, limit proprietary trading capacity, or force external funding during stress periods, weakening long-term operational flexibility if not reversed.

Capital-Markets Cyclicality

A business model concentrated in capital markets ties revenue to market volumes and volatility. This structural cyclicality can produce durable swings in brokerage, asset-management fees and proprietary trading income over months, making revenue and earnings more sensitive to market downturns.

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

PRIMESECU generates revenue through multiple streams, including brokerage fees from trading activities, asset management fees from managing client portfolios, and commissions from advisory services. The company also earns income from proprietary trading, where it invests its own capital in various financial instruments. Significant partnerships with financial institutions and market exchanges enhance its trading capabilities and improve access to liquidity, further contributing to its earnings. Additionally, PRIMESECU may engage in wealth management services that involve performance-based fees, aligning its interests with those of its clients.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	965.40M	798.00M	615.10M	405.40M	415.40M	406.90M
Gross Profit	606.60M	444.50M	286.60M	177.60M	236.90M	181.50M
EBITDA	469.50M	461.70M	248.00M	168.80M	227.20M	123.20M
Net Income	366.80M	383.00M	185.60M	111.80M	169.80M	82.10M
Balance Sheet
Total Assets	0.00	2.30B	1.77B	1.41B	1.31B	814.20M
Cash, Cash Equivalents and Short-Term Investments	0.00	568.20M	532.80M	583.30M	157.80M	385.20M
Total Debt	0.00	33.70M	9.20M	15.50M	72.70M	27.60M
Total Liabilities	-2.06B	242.30M	193.20M	138.90M	192.60M	242.10M
Stockholders Equity	2.06B	2.06B	1.58B	1.27B	1.11B	572.00M
Cash Flow
Free Cash Flow	0.00	226.60M	129.60M	-56.30M	-7.20M	250.50M
Operating Cash Flow	0.00	278.60M	131.50M	-52.80M	11.90M	259.00M
Investing Cash Flow	0.00	-260.90M	-180.20M	34.50M	-476.30M	-125.60M
Financing Cash Flow	0.00	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 273.28, below the 50-day MA of 282.13, and above the 200-day MA of 273.10, indicating a bearish trend. The MACD of -4.36 indicates Negative momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 is Negative, 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	₹9.32B	34.07	―	0.51%	34.10%	-15.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSLFINANCE	66 Neutral	₹6.29B	7.61	―	0.93%	17.32%	13.66%
ARIHANTCAP	65 Neutral	₹8.42B	18.35	―	0.53%	-27.65%	-44.96%
BIRLAMONEY	63 Neutral	₹7.06B	13.80	―	―	-6.37%	-24.10%
VLSFINANCE	61 Neutral	₹8.81B	-44.90	―	0.52%	-98.34%	-106.71%
THEINVEST	59 Neutral	₹5.26B	24.40	―	―	-9.21%	-48.40%

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.

Prime Securities Allots Equity Shares to Employees, Boosting Capital

Prime Securities Limited has announced the allotment of 255,000 equity shares to eligible employees under its Employee Stock Option Scheme 2018. This move increases the company’s paid-up share capital to INR 16,95,01,625, reflecting a strategic effort to enhance employee engagement and retention through equity participation.