Prime Securities Limited (PRIMESECU) AI Stock Analysis

• Market Cap: ₹9.74B
• Dividend Yield: 0.51%
• Average Volume (3M): 7.34K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.13
• Revenue Growth: 34.10%
• EPS Growth: -15.20%
• Country: IN
• Employees: 19
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 4.09
• 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): 9.54
• 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: ₹340.00 ▲(23.57% 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

Strong revenue growth indicates effective business strategies and market demand, supporting long-term financial health and expansion opportunities.

Profitability

High profitability margins reflect efficient operations and cost management, enhancing the company's ability to reinvest in growth and withstand economic fluctuations.

Cash Flow Management

Strong cash flow growth demonstrates effective cash management, providing liquidity for investments and reducing reliance on external financing.

Negative Factors

Cash Reserves

Reduced cash reserves may limit the company's ability to respond to unexpected expenses or invest in new opportunities, potentially impacting future growth.

Leverage

While low leverage indicates financial stability, it may also suggest underutilization of debt for growth opportunities, potentially limiting expansion.

Employee Base

A small employee base could constrain the company's ability to scale operations and manage increased workloads, potentially affecting service delivery and growth.

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: 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 283.68, below the 50-day MA of 293.90, and above the 200-day MA of 270.76, indicating a bearish trend. The MACD of -2.46 indicates Negative momentum. The RSI at 38.97 is Neutral, neither overbought nor oversold. The STOCH value of 36.16 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	₹9.74B	29.05	―	0.51%	34.10%	-15.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSLFINANCE	66 Neutral	₹6.62B	8.02	―	0.93%	17.32%	13.66%
ARIHANTCAP	65 Neutral	₹9.58B	20.87	―	0.53%	-27.65%	-44.96%
BIRLAMONEY	63 Neutral	₹7.91B	13.79	―	―	-6.37%	-24.10%
VLSFINANCE	61 Neutral	₹9.58B	-49.11	―	0.52%	-98.34%	-106.71%
THEINVEST	58 Neutral	₹6.27B	28.89	―	―	-9.21%	-48.40%

Prime Securities Limited Corporate Events

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.