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Check Before You Invest : Prudent Corporate Advisory Services Ltd

BSE: 543527 NSE: PRUDENT ISIN: INE00F201020
  |   Sector:  BFSI   |   Industry:  Finance - Others

Snapshot

Q.1 Which industry/sub-sector does Prudent Corporate Advisory Services Ltd belong to?
Prudent Corporate Advisory Services Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.
Q.2 Is Prudent Corporate Advisory Services Ltd a good quality company?
Prudent Corporate Advisory Services Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Prudent Corporate Advisory Services Ltd undervalued or overvalued?
Prudent Corporate Advisory Services Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 51.35 58.61
Price to Book 15.14 16.54
Price to Sales 8.81 9.01
EV to EBITDA 34.13 36.72
Q.4 Is Prudent Corporate Advisory Services Ltd a good buy now?
Prudent Corporate Advisory Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd revenue growth is 40.4% for FY-2025, which is above its 5-year CAGR of 37.43%, indicating faster growth.

Q.2 Gross Profit margin of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.2% for FY-2025, which is in line with its 5-year median of 23.9%, indicating stable margins.

Q.3 Operating Profit Margin of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.22% for FY-2025, which is in line with its 5-year median of 22.22% indicating stable margins.

Q.4 Net Profit Margin of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Net Profit Margin is 16.08% for FY-2025, is above its 5-year median of 15.01%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 24.2 23.9
Operating Profit Margin (%) 22.22 22.22
Net Profit Margin (%) 16.08 15.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Return on Asset is 22.5%, which is in line with its 5-year historical median of 22.5%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Return on capital employed is 47% for FY-2025, which is in line with its 5-year historical median of 46.1%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Return on equity is 34.7% for FY-2025, which is in line with its 5-year historical median of 33.9%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Cash conversion cycle is -26 days, below its 5-year historical median of -17 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.4 1.4
ROE (%) 34.7 33.9
ROCE (%) 47 46.1
Cash Conversion Cycle -26 days -17 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of Prudent Corporate Advisory Services Ltd?
Prudent Corporate Advisory Services Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Prudent Corporate Advisory Services Ltd?

Q.1 Promoter shareholding and pledge status of Prudent Corporate Advisory Services Ltd?
Promoters hold 55.31% of the Prudent Corporate Advisory Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Prudent Corporate Advisory Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Prudent Corporate Advisory Services Ltd vs industry peers?
Prudent Corporate Advisory Services Ltd revenue CAGR is 37.43%, compared to the industry median CAGR of 23.54%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 40.4 23.5
Gross Profit Growth (%) 38 41.8
Operating Profit Growth (%) 35.9 43.1
Net Profit Growth (%) 42.7 40.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.4 0.34
ROE (%) 34.7 6
ROCE (%) 47 9.75
Cash Conversion Cycle (days) -26.29 8

Valuation & price assessment

Q.1 Stock return of Prudent Corporate Advisory Services Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 45.47% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 45.5% 3%
Q.2 Valuation ratios of Prudent Corporate Advisory Services Ltd vs historical?
The current P/E ratio of 51.35 is lower than its historical median of 58.61, indicating that the stock is trading below its historical average valuation.
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 51.35 58.61 40.56
Price to Book 15.14 16.54 4.06
Price to Sales 8.81 9.01 9.32
EV to EBITDA 34.13 36.72 25.78

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