BSE:500337

Stock Analysis Report

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Executive Summary

Prime Securities Limited provides corporate advisory and investment banking services in India. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Prime Securities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500337 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 500337's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-8.1%

500337

0.5%

IN Capital Markets

1.3%

IN Market


1 Year Return

-1.5%

500337

-12.4%

IN Capital Markets

7.6%

IN Market

Return vs Industry: 500337 exceeded the Indian Capital Markets industry which returned -12.4% over the past year.

Return vs Market: 500337 underperformed the Indian Market which returned 7.6% over the past year.


Shareholder returns

500337IndustryMarket
7 Day-8.1%0.5%1.3%
30 Day-7.7%3.6%7.1%
90 Day-11.4%-1.5%9.2%
1 Year-1.5%-1.5%-11.2%-12.4%9.6%7.6%
3 Year-11.5%-11.5%-26.8%-29.7%4.5%-0.6%
5 Year860.0%860.0%61.7%50.0%51.0%39.7%

Long-Term Price Volatility Vs. Market

How volatile is Prime Securities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Prime Securities undervalued compared to its fair value and its price relative to the market?

15.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500337 (₹43.2) is trading below our estimate of fair value (₹51.25)

Significantly Below Fair Value: 500337 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 500337 is poor value based on its PE Ratio (55.3x) compared to the IN Capital Markets industry average (13.6x).

PE vs Market: 500337 is poor value based on its PE Ratio (55.3x) compared to the Indian market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500337's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500337 is overvalued based on its PB Ratio (2.3x) compared to the IN Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Prime Securities forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.3%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Prime Securities has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Prime Securities performed over the past 5 years?

-21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500337 has a large one-off loss of ₹14.6M impacting its September 30 2020 financial results.

Growing Profit Margin: 500337's current net profit margins (3.2%) are lower than last year (30.7%).


Past Earnings Growth Analysis

Earnings Trend: 500337 has become profitable over the past 5 years, growing earnings by -21.8% per year.

Accelerating Growth: 500337's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500337 had negative earnings growth (-88.1%) over the past year, making it difficult to compare to the Capital Markets industry average (-0.5%).


Return on Equity

High ROE: 500337's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is Prime Securities's financial position?


Financial Position Analysis

Short Term Liabilities: 500337's short term assets (₹230.6M) exceed its short term liabilities (₹21.4M).

Long Term Liabilities: 500337's short term assets (₹230.6M) exceed its long term liabilities (₹54.6M).


Debt to Equity History and Analysis

Debt Level: 500337 is debt free.

Reducing Debt: 500337 currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: 500337 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500337 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Prime Securities's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500337's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 500337's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500337's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500337's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500337 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500337's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Narayanswami Jayakumar (60 yo)

9.75yrs

Tenure

₹60,186,000

Compensation

Mr. Narayanswami Jayakumar has been the Managing Director of Prime Securities Ltd. since February 12, 2011 and serves as its Group Chief Executive Officer and served as its President since 2002 until Febru...


CEO Compensation Analysis

Compensation vs Market: Narayanswami's total compensation ($USD811.96K) is above average for companies of similar size in the Indian market ($USD51.27K).

Compensation vs Earnings: Narayanswami's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Narayanswami Jayakumar
MD, Group CEO & DIrector9.75yrs₹60.19m13.07%
₹ 155.0m
Subramanian Sharma
Chief Financial Officer1.5yrsno data0.015%
₹ 174.0k
Ajay Shah
Senior VP of Legal1.5yrs₹7.27m0.022%
₹ 265.3k
Akshay Gupta
Non-Executive Non-Independent Director and CEO & CIO of Prime Research & Advisory Limited1.25yrsno data1.73%
₹ 20.5m
Apurva Doshi
Senior Vice President of Investment Banking1.83yrsno datano data
Nischay Saraf
Senior Vice President of Investment Bankingno datano datano data

1.7yrs

Average Tenure

60yo

Average Age

Experienced Management: 500337's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Narayanswami Jayakumar
MD, Group CEO & DIrector9.75yrs₹60.19m13.07%
₹ 155.0m
Akshay Gupta
Non-Executive Non-Independent Director and CEO & CIO of Prime Research & Advisory Limited1.25yrsno data1.73%
₹ 20.5m
Pradip Dubhashi
Independent Chairman of the Board9.83yrs₹1.26mno data
Smita Affinwalla
Non-Executive Independent Director1.75yrs₹1.04mno data
Alpana Shah
Non-Executive Independent Director5.67yrs₹960.00kno data
Namrata Kaul
Non-Executive Independent Director1.75yrs₹1.02mno data

3.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 500337's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

Prime Securities Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prime Securities Limited
  • Ticker: 500337
  • Exchange: BSE
  • Founded: 1982
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: ₹1.186b
  • Shares outstanding: 27.26m
  • Website: https://www.primesec.com

Location

  • Prime Securities Limited
  • 1109/1110 Maker Chamber V
  • Nariman Point
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500337BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
PRIMESECUNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

Biography

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; strate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 12:41
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.