1. At a Glance
Q1 FY26: Prime Securities delivered 61% revenue growth and 25% PAT bump. Merchant banking, insurance, and now wealth management—this is less of a company and more of a finance buffet.
2. Introduction with Hook
If Dalal Street had a Tinder, Prime Securities would be swiping right on every financial vertical: merchant banking? Yes. Insurance advisory? Done. Wealth management? Just launched.
- Q1 FY26 Revenue: ₹46.91 Cr
- Q1 FY26 Net Profit: ₹10.48 Cr
- YOY Sales Growth: +61%
- PBT Growth: +34%
- Bonus Move: Wealth management division added for spice
3. Business Model (WTF Do They Even Do?)
- Core: Category-I Merchant Banking license holder
- Subsidiaries:
- Prime Research & Advisory Ltd → Corporate Insurance Agent
- Services:
- Investment banking
- Corporate advisory
- Capital market placements
- Private equity deal execution
- Wealth management (new vertical FY26)
In short, every finance kid’s dream resume in one company.
4. Financials Overview
| Particulars | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|
| Sales (₹ Cr) | 47 | 67 | 89 | 111 |
| EBITDA Margin | 32% | 37% | 47% | 42% |
| Net Profit (₹ Cr) | 11 | 19 | 38 | 37 |
| EPS (₹) | 3.46 | 5.58 | 11.39 | 10.93 |
| ROE (%) | 14% | 19% | 19.4% | |
| ROCE (%) | 12% | 17% | 22.6% |
5. Valuation
- Market Cap: ₹940 Cr
- P/E: 25.6
- Book Value: ₹61.3 → P/B = 4.5
- ROE: 19.4%
- Growth + Profitability = Premium justified
Fair Value Estimate:
- P/E 18–25 range: ₹200–₹280
- ROE-based DCF estimate: ₹220–₹270
- Peer Multiples (CRISIL excluded): ~₹230–₹250
Fair Value Range: ₹220 to ₹280
At CMP ₹278 → Near upper band. Pricey, but not delusional.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Result: ₹47 Cr revenue (up 61%), PAT ₹10.5 Cr
- Launched Wealth Management Division in Q1
- Public shareholding at 90%+
- Cash flows healthy, zero debt
- ROE of 19%—close to elite category
- EPS Q1 FY26: ₹3.12 vs ₹0.24 QoQ
7. Balance Sheet
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 16 | 17 | 17 |
| Reserves | 111 | 141 | 189 |
| Borrowings | 0 | 0 | 0 |
| Investments | 56 | 109 | 176 |
| Total Assets | 141 | 177 | 230 |
Key Takeaways:
- Debt-free since FY20
- Reserves growing consistently
- Investments up 3x in 2 years → Building an asset-heavy engine
- ROE continues to improve
8. Cash Flow – Sab Number Game Hai
| Cash Flow Item (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash Flow | -5 | 13 | 28 |
| Investing Cash Flow | 3 | -18 | -26 |
| Financing Cash Flow | -6 | 4 | -1 |
| Net Cash Flow | -8 | -1 | 0 |
Narrative:
- Op cash flow jumped in FY25
- Investment in asset base continues
- Capex discipline maintained, despite business expansion
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 12% | 17% | 23% |
| ROE (%) | 14% | 19% | 19.4% |
| P/E | 19 | 24 | 25.6 |
| Working Capital | 111 | 48 | 36 |
| Debt/Equity | 0 | 0 | 0 |
Verdict:
Solid returns, zero debt, and improving WC cycle
ROCE heading into upper league territory
10. P&L Breakdown – Show Me the Money
| Quarter | Sales (₹ Cr) | OPM (%) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| Q1 FY25 | 29 | 43% | 12 | 3.61 |
| Q4 FY25 | 13 | 9% | 1 | 0.24 |
| Q1 FY26 | 47 | 36% | 10.48 | 3.12 |
Highlights:
- Massive revenue surge in Q1 FY26
- EPS normalized again after temporary dip
- OPM stable despite service mix change
11. Peer Comparison
| Company | P/E | ROE (%) | Market Cap (₹ Cr) | Qtr Profit (₹ Cr) |
|---|---|---|---|---|
| CRISIL | 58 | 27.8 | 42,307 | 171.57 |
| Wealth First | 38 | 28.4 | 1,330 | -4.27 |
| Algoquant Fin | 60 | 37.6 | 1,923 | 0.61 |
| Prime Securities | 25.6 | 19.4 | 940 | 10.48 |
Conclusion:
- Lower P/E vs niche financial players
- ROE improving
- Only one with clean balance sheet + consistent net profit
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Jun ’23 | Jun ’24 | Jun ’25 |
|---|---|---|---|
| FII | 5.6% | 6.0% | 4.5% |
| DII | 0.04% | 4.8% | 4.9% |
| Public | 94.4% | 89.1% | 90.6% |
- No promoter holding (public-owned juggernaut)
- DII interest improving post FY24
- Retail remains bullish—shareholders: 20,623+
13. EduInvesting Verdict™
Prime Securities is like that college topper who was ignored in FY20, but is now quietly raking in internships, offers, and a side hustle in wealth management.
From merchant banking to insurance to wealth advisory—it’s building a diversified fortress. Financials are tight, margins are respectable, and RoE is near elite zone. But… it’s already pricing in a lot of good news.
Execution in wealth management will decide whether this is a “Prime” time or a prime letdown.
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: Prime Securities, Merchant Banking, Q1 FY26, Financial Services, Smallcap Finance
