Prime Securities Limited

Financial Services — Capital Markets · NSE

₹286.00−₹10.40 (−3.51%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Prime Securities Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

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

IndustryCapital Markets

SectorFinancial Services

Employees147

Annual revenue₹128 Cr

How does it make money?

Turns over ₹128 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 147 employees supports ₹86.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹86.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +215% while net margin moved -63% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+215%

Margin effect-63%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 182.2x is demanding — it needs sustained high growth to justify
✗ P/E is 263% above its own historical median of 50.2x — expensive by its own standards

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

25/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

182.2x

3Y Median

50.2x

40 monthly readings · mean 45.3x · range 23.7x–79.3x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 263% above its 3y median of 50.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 212% above the peer median of 58.4x.

vs. its own history

Expensive

50.2x median over 40 months · +263%

vs. sector peers

Expensive

58.4x median of 3 peers · +212%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.5x

PEG

32.61

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.8% to 5.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.9% to 2.8% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.8 points, from 36.5% to 27.7%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 36.5% to 27.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 263% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 8.8% to 5.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 35% a year✓ 46.6% CAGR
Latest reported year was -28.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 5.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 50.2x✗ 182.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹971 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

182.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.57

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

2.8%

Weak

Low return on total capital employed

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

-28.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-78.4%

Falling

Profits are shrinking

Dividend Yield

0.52%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

19.2%

Good

Healthy core-business profitability

Net Margin

6.9%

Average

Average bottom-line conversion

Current Ratio

26.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

298.7 / 290.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹41 Cr	₹62 Cr	₹80 Cr	₹128 Cr	+46.6%
EBITDA	₹15 Cr	₹25 Cr	₹40 Cr	₹35 Cr	+33.8%
EBITDA Margin	36.5%	40.0%	49.6%	27.7%	—
PAT (Net Profit)	₹11 Cr	₹19 Cr	₹38 Cr	₹13 Cr	+5.6%
EPS	₹3.31	₹5.42	₹11.08	₹4.47	+10.6%
ROE	8.8%	11.8%	18.6%	5.1%	—
ROCE	11.9%	14.4%	20.7%	2.8%	—
Total Debt	₹2 Cr	₹1 Cr	₹3 Cr	₹5 Cr	+45.7%
Free Cash Flow	-₹6 Cr	₹13 Cr	₹23 Cr	-₹12 Cr	—

🟢 Revenue has grown at 46.6% a year over 3 years.

🟢 EBITDA has grown at 33.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 36.5% to 27.7% over 3 years (-8.8 pts).

🟢 PAT (Net Profit) has grown at 5.6% a year over 3 years.

🟢 EPS has grown at 10.6% a year over 3 years.

🔴 ROE has fallen from 8.8% to 5.1% over 3 years (-3.7 pts).

🔴 ROCE has fallen from 11.9% to 2.8% over 3 years (-9.0 pts).

🔴 Total Debt has grown at 45.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹266 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

6.4%

Insider Holding

53.7%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

26 Jun 2025

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 mixed5 general

Prime Securities Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Prime Securities Ltd is Rated Sell

MarketsMojo, 16 Oct

Prime Securities vs Nifty 50: 1Y Return -2.42% vs -11.71%

Univest, 09 Oct

Prime Securities (PRIMESECU.NS) Holds Steady Near ₹279.45 as Consolidation Persists - Island Reversal

https://www.siam.in/, 08 Sept

Prime Securities AGM voting results show 99.99% support for key resolutions

scanx.trade, 29 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

DAM Capital Advisors vs Prime Securities vs Master Trust

Univest, 13 Oct

Watch Items

Revenue growth is negative (-28.8%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth

WeakProfitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 4 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 50.2x · see Key things to watch ↑