Check Before You Invest : Prime Capital Market Ltd

Snapshot

Q.1 Which industry/sub-sector does Prime Capital Market Ltd belong to?

Prime Capital Market Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Prime Capital Market Ltd a good quality company?

Prime Capital Market Ltd is a quality company, based on a 6-year financial track record.

Q.3 Is Prime Capital Market Ltd undervalued or overvalued?

Prime Capital Market Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Prime Capital Market Ltd a good buy now?

Prime Capital Market Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Prime Capital Market Ltd?

Prime Capital Market Ltd Operating Income growth is NA% for FY-2025, which is below its 5-year CAGR of 31.65%, indicating slower growth.

Q.2 Return on Assets of Prime Capital Market Ltd?

Prime Capital Market Ltd Return on Asset is 5.1%, which is above its 5-year historical median of -0.6%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	8.46	325.87
PPOP%	1560	-58.33
RoA%	5.1	-0.6

Q.3 Return on Equity (ROE) of Prime Capital Market Ltd?

Prime Capital Market Ltd Return on Equity is 6% for FY-2025, which is above its 5-year historical median of 0.1%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Prime Capital Market Ltd?

Prime Capital Market Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 1560% for FY-2025, which is above its 5-year median(-58.33%), indicating increasing margins.

Q.5 Net Profit Margin of Prime Capital Market Ltd?

Prime Capital Market Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 8.46% for FY-2025, which is below its 5-year median( 325.87%), indicating decreasing margins.

Q.6 Total Asset growth of Prime Capital Market Ltd?

Prime Capital Market Ltd Total Asset growth is 17.12% for FY-2025, which is above its 5-year CAGR of -4.25%, indicating faster growth.

Q.7 Capital Adequacy ratio of Prime Capital Market Ltd?

Prime Capital Market Ltd Capital Adequacy ratio (CAR) is 81.2% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Prime Capital Market Ltd?

Promoters hold 0.00% of the Prime Capital Market Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Prime Capital Market Ltd vs Industry Peers?

Prime Capital Market Ltd AUM CAGR is -4.25%, compared to the 5-year industry median CAGR of 9.9%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Prime Capital Market Ltd vs industry peers

Prime Capital Market Ltd profit metrics are in line with the industry median level of 7.19%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	8.46	15.95
PPOP%	1560	4.17
RoA%	5.1	1.45

Q.3 Operating efficiency of Prime Capital Market Ltd vs industry peers?

Prime Capital Market Ltd ROCE (0.1) is below the industry median of (4.4); while the current ROE (0.1) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	8.46	15.95
PPOP%	1560	4.17
RoA%	5.1	1.45
ROCE%	8.3	4.4
ROE%	6	2.7

Valuation & price assessment

Q.1 Stock return of Prime Capital Market Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 2.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	2.5%	6.2%	10.5%	-18.2%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	6.06	10.00	28.96
Price to Book	0.63	0.46	1.11
Price to Sales	0.88	19.76	9.10
EV to EBITDA	7.16	-24.67	11.77

Q.4 Valuation ratios of Prime Capital Market Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.63% is higher than its historical median of 0.46%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Prime Capital Market Ltd return on invested capital (ROIC) is 5.89% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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