NSEI:PRIMESECU

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

31.9%

PRIMESECU

5.2%

IN Capital Markets

3.8%

IN Market


1 Year Return

31.4%

PRIMESECU

-24.6%

IN Capital Markets

6.0%

IN Market

Return vs Industry: PRIMESECU exceeded the Indian Capital Markets industry which returned -24.6% over the past year.

Return vs Market: PRIMESECU exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

PRIMESECUIndustryMarket
7 Day31.9%5.2%3.8%
30 Day25.6%-6.5%2.9%
90 Day15.2%-12.8%2.9%
1 Year31.4%31.4%-23.4%-24.6%8.2%6.0%
3 Year3.0%3.0%-19.1%-21.9%23.0%16.7%
5 Year651.6%651.6%12.1%5.2%43.6%30.0%

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

Valuation

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

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRIMESECU (₹45.85) is trading below our estimate of fair value (₹89.13)

Significantly Below Fair Value: PRIMESECU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRIMESECU is good value based on its PE Ratio (7.1x) compared to the Capital Markets industry average (13.4x).

PE vs Market: PRIMESECU is good value based on its PE Ratio (7.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PRIMESECU is overvalued based on its PB Ratio (3.4x) 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?

-22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRIMESECU's earnings are forecast to decline over the next 3 years (-22.2% per year).

Earnings vs Market: PRIMESECU's earnings are forecast to decline over the next 3 years (-22.2% per year).

High Growth Earnings: PRIMESECU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if PRIMESECU's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if PRIMESECU's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PRIMESECU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Prime Securities performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PRIMESECU has become profitable over the past 5 years, growing earnings by 22.3% per year.

Accelerating Growth: PRIMESECU's earnings growth over the past year (35.5%) exceeds its 5-year average (22.3% per year).

Earnings vs Industry: PRIMESECU earnings growth over the past year (35.5%) exceeded the Capital Markets industry -17.9%.


Return on Equity

High ROE: PRIMESECU's Return on Equity (48.2%) is considered outstanding.


Return on Assets

ROA vs Industry: PRIMESECU has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PRIMESECU's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Prime Securities's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PRIMESECU has a low level of unsold assets or inventory.

Debt Coverage by Assets: PRIMESECU's debt is covered by short term assets (assets are 9.247990x debt).


Financial Institutions Analysis

Asset Level: PRIMESECU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PRIMESECU has a sufficient allowance for bad loans.

Low Risk Liabilities: PRIMESECU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PRIMESECU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PRIMESECU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PRIMESECU has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Prime Securities's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

N. Jayakumar (59yo)

8.7yrs

Tenure

₹25,104,617

Compensation


CEO Compensation Analysis

Compensation vs. Market: N.'s total compensation ($USD353.21K) is about average for companies of similar size in the Indian market ($USD32.51K).

Compensation vs Earnings: N.'s compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.4yrs

Average Tenure

60yo

Average Age

Experienced Management: PRIMESECU's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

59yo

Average Age

Experienced Board: PRIMESECU's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Ajay Shah

    VP of Legal

    • Tenure: 0.4yrs
    • Compensation: ₹3.94m
  • Nikhil Shah

    Head of Accounts and Finance

    • Tenure: 0yrs
    • Compensation: ₹1.63m
  • N. Jayakumar (59yo)

    MD, Group CEO & DIrector

    • Tenure: 8.7yrs
    • Compensation: ₹25.10m
  • S. Sharma (60yo)

    CFO & MD of Restructuring Business and Executive Director

    • Tenure: 8.8yrs
  • Akshay Gupta (60yo)

    CEO & CIO of Prime Research & Advisory Limited and Non-Executive & Non-Independent Director

    • Tenure: 0.2yrs

Board Members

  • Pradip Dubhashi (71yo)

    Independent Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: ₹1.04m
  • N. Jayakumar (59yo)

    MD, Group CEO & DIrector

    • Tenure: 8.7yrs
    • Compensation: ₹25.10m
  • S. Sharma (60yo)

    CFO & MD of Restructuring Business and Executive Director

    • Tenure: 8.8yrs
  • Akshay Gupta (60yo)

    CEO & CIO of Prime Research & Advisory Limited and Non-Executive & Non-Independent Director

    • Tenure: 0.2yrs
  • Smita Affinwalla (57yo)

    Independent Director

    • Tenure: 0.7yrs
    • Compensation: ₹80.00k
  • Alpana Parida (56yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: ₹840.00k
  • Namrata Kaul (55yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: Prime Securities Limited
  • Ticker: PRIMESECU
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: ₹1.222b
  • Shares outstanding: 26.52m
  • 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 Analysis2019/10/20 12:52
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.