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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Prime Securities Ltd

About the Company - Prime Securities Ltd

Prime Securities Ltd. is a Public Limited Listed company incorporated on 20/03/1982 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH1982PLC026724 and registration number is 026724. Currently Company is involved in the business activities of Other financial service activities, except insurance and pension funding activities. Company’s Total Operating Revenue is Rs. 34.01 Cr. and Equity Capital is Rs. 15.59 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments1109/1110, Maker Chambers V, Nariman Point, Mumbai Maharashtra 400021prime@primesec.com
http://www.primesec.com
Management
NamePosition Held
Mr. Pradip DubhashiChairman & Ind.Director
Mr. N JayakumarManaging Director & Group CEO
Mr. Ashok KackerNon Exe.Non Ind.Director
Mr. Akshay GuptaNon Exe.Non Ind.Director
Mr. Sujit Kumar VarmaNon Exe.Non Ind.Director
Ms. Smita AffinwallaIndependent Director
Ms. Namrata KaulIndependent Director

Prime Securities Ltd. Share Price Update

Share PriceValue
Today₹181.05
Previous Day₹182.00

Basic Stock Data of Prime Securities Ltd

Market Cap 604 Cr.
Current Price 182
High / Low202/92.3
Stock P/E29.7
Book Value 41.2
Dividend Yield0.28 %
ROCE11.6 %
ROE8.35 %
Face Value 5.00

Data Source: screener.in

Competitors of Prime Securities Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Acme Resources Ltd 132 Cr. 51.276.5/13.810.5 49.40.00 %13.2 %10.4 % 10.0
MAS Financial Services Ltd 5,433 Cr. 331388/22722.8 1000.37 %11.4 %14.2 % 10.0
PNB Gilts Ltd 1,908 Cr. 106128/55.2242 70.90.00 %4.83 %6.33 % 10.0
NBI Industrial Finance Company Ltd 455 Cr. 1,8532,030/1,40065.1 9,5070.02 %0.35 %0.23 % 5.00
Smartlink Holdings Ltd 173 Cr. 174205/1341,575 1830.00 %1.57 %0.91 % 2.00
Industry Average1,620.20 Cr503.04383.081,982.060.08%6.27%6.41%7.40

Prime Securities Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8.916.3119.077.1513.2015.4410.459.838.6815.8712.1220.6815.40
Expenses5.595.2215.334.625.257.579.036.567.6610.606.9513.7510.54
Operating Profit3.321.093.742.537.957.871.423.271.025.275.176.934.86
OPM %37.26%17.27%19.61%35.38%60.23%50.97%13.59%33.27%11.75%33.21%42.66%33.51%31.56%
Other Income0.010.001.642.810.100.000.010.090.850.001.210.000.00
Interest0.120.110.070.070.050.060.250.090.120.180.180.060.02
Depreciation0.350.360.290.260.230.220.160.220.270.280.370.220.26
Profit before tax2.860.625.025.017.777.591.023.051.484.815.836.654.58
Tax %0.35%3.23%25.50%14.37%16.86%26.48%38.24%19.02%46.62%19.75%30.36%24.36%13.76%
Net Profit2.850.603.744.296.465.580.632.470.793.864.065.033.95
EPS in Rs1.070.231.411.622.441.790.200.780.251.201.251.541.20

Prime Securities Ltd Quarterly Chart

Prime Securities Ltd Profit & Loss

MonthMar 2011Mar 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales301-37-9122024477444464764
Expenses12113784-358306233263242
Operating Profit18-11-74-1785516171211201522
OPM %60%-1,889%68%281%67%36%16%24%44%33%35%
Other Income1-0168-352-0-02321
Interest1414133000000010
Depreciation0011100011111
Profit before tax4-25-86-15151917161111211522
Tax %27%-8%-0%-1%4%31%17%23%27%23%21%26%
Net Profit3-28-87-151413141388171117
EPS in Rs1.04-10.44-32.75-5.755.365.065.394.762.983.105.453.465.19
Dividend Payout %0%0%0%0%0%0%0%0%0%145%41%14%

Prime Securities Ltd Profit & Loss Yearly Chart

Prime Securities Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:15%
3 Years:-14%
TTM:47%
Compounded Profit Growth
10 Years:%
5 Years:-6%
3 Years:8%
TTM:164%
Stock Price CAGR
10 Years:50%
5 Years:36%
3 Years:64%
1 Year:81%
Return on Equity
10 Years:%
5 Years:17%
3 Years:13%
Last Year:8%

Prime Securities Ltd Balance Sheet

MonthMar 2011Mar 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital13131313131313131313161616
Reserves10274-13-28-14-18-320324496111119
Borrowings9910810211089178400500
Other Liabilities3044179146114104111624141415
Total Liabilities2442392822412032222496281131141151
Fixed Assets5655333243332
CWIP0000000000100
Investments110121755749223217445669
Other Assets1291122011801501817445662838380
Total Assets2442392822412032222496281131141151

Prime Securities Ltd Reserves and Borrowings Chart

Prime Securities Ltd Cash Flow

MonthMar 2011Mar 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2241-40-14-077-115401-5
Cash from Investing Activity 15-343979200-2-3-27-483
Cash from Financing Activity -35-6-206-7-25-94-3-034-6
Net Cash Flow21-21-113-21913-13-8

Prime Securities Ltd Financial Efficiency Indicators

MonthMar 2011Mar 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days30420,629-1,278-4,8283,787802017222728116
Inventory Days00
Days Payable
Cash Conversion Cycle30420,629-1,278-4,8283,787802017222728116
Working Capital Days83322,20084864784-5742205112-5934110
ROCE %8%-5%-49%-14%20%18%105%60%27%21%22%12%

Prime Securities Ltd Financial Efficiency Indicators Chart

Prime Securities Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
FIIs0.42%1.40%2.90%3.87%3.42%4.47%4.89%4.86%5.34%5.85%5.59%8.45%
DIIs0.05%0.06%0.05%0.05%0.05%0.05%0.05%0.04%0.04%0.04%0.04%0.04%
Public99.53%98.54%97.05%96.08%96.53%95.48%95.06%95.09%94.61%94.10%94.37%91.50%
No. of Shareholders19,95019,69419,09119,65119,32819,53819,33919,10618,80818,49618,92718,320

Prime Securities Ltd Shareholding Pattern Chart

No. of Prime Securities Ltd Shareholders

This stock is not held by any mutual fund

Prime Securities Ltd ROCE Trend

Prime Securities Ltd EPS Trend

Prime Securities Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)3.526.023.102.984.76
Diluted EPS (Rs.)3.315.593.012.954.75
Cash EPS (Rs.)3.815.723.573.344.86
Book Value[Excl.RevalReserv]/Share (Rs.)39.2135.7421.5217.039.39
Book Value[Incl.RevalReserv]/Share (Rs.)39.2135.7421.5217.039.39
Revenue From Operations / Share (Rs.)12.5314.6116.4027.9917.65
PBDIT / Share (Rs.)4.686.404.634.496.36
PBIT / Share (Rs.)4.336.124.154.126.26
PBT / Share (Rs.)4.696.874.004.046.19
Net Profit / Share (Rs.)3.455.453.092.974.75
NP After MI And SOA / Share (Rs.)3.455.453.092.974.75
PBDIT Margin (%)37.3743.7828.2316.0436.06
PBIT Margin (%)34.5541.8725.2814.7135.44
PBT Margin (%)37.4147.0124.4014.4235.08
Net Profit Margin (%)27.5737.2618.8110.5926.90
NP After MI And SOA Margin (%)27.5737.2618.8110.5926.90
Return on Networth / Equity (%)8.8115.2314.3417.4150.56
Return on Capital Employeed (%)10.5116.4914.4720.5039.62
Return On Assets (%)7.9312.9910.0812.7925.99
Total Debt / Equity (X)0.000.040.010.010.15
Asset Turnover Ratio (%)0.180.330.440.340.21
Current Ratio (X)17.697.9112.765.976.71
Quick Ratio (X)17.697.9112.765.976.71
Dividend Payout Ratio (NP) (%)64.1370.250.000.000.00
Dividend Payout Ratio (CP) (%)58.1966.830.000.000.00
Earning Retention Ratio (%)35.8729.750.000.000.00
Cash Earning Retention Ratio (%)41.8133.170.000.000.00
Interest Coverage Ratio (X)26.5846.4032.4254.3299.59
Interest Coverage Ratio (Post Tax) (X)17.5834.0522.6136.8675.29
Enterprise Value (Cr.)298.05226.8966.6862.24108.25
EV / Net Operating Revenue (X)7.354.981.530.832.31
EV / EBITDA (X)19.6711.375.415.216.39
MarketCap / Net Operating Revenue (X)8.776.322.531.052.32
Retention Ratios (%)35.8629.740.000.000.00
Price / BV (X)2.802.591.931.734.36
Price / Net Operating Revenue (X)8.776.322.531.052.32
EarningsYield0.030.050.070.100.11

Prime Securities Ltd Profitability Ratios (%)

Prime Securities Ltd Liquidity Ratios

Prime Securities Ltd Liquidity Ratios (%)

Prime Securities Ltd Interest Coverage Ratios (X)

Prime Securities Ltd Valuation Ratios

Fair Value / Intrinsic Value of Prime Securities Ltd

Fair Value: ₹102.46

The stock is overvalued by 43.70% compared to the current price ₹182

*Investments are subject to market risks

Strength and Weakness of Prime Securities Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 18.75%, which is a positive sign.
  2. The company has shown consistent growth in sales (27.92 cr) and profit (1.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 5.00 and average Dividend Yield of 30.37%.
  2. The stock has a high average Working Capital Days of 247.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 63.92, which may not be favorable.
  4. The company has higher borrowings (41.69) compared to reserves (40.15), which may suggest financial risk.

Should I Buy Prime Securities Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Prime Securities Ltd:
    1. Net Profit Margin: 27.57% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.51% (Industry Average ROCE: 6.3%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 17.58 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 17.69 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 29.2 (Industry average Stock P/E: 43.75)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Prime Securities Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE