Prime Securities (PRIMESECU)
TurnaroundFairStock Score: 40/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹281.95 |
| Market Cap | ₹956.95 Cr |
| P/E Ratio | 208.85 |
| ROCE | 22.62% |
| ROE | 13.82% |
| Dividend Yield | 0.5% |
| Profit Growth | 999% |
| Debt/Equity | 0.01 |
| Sales Growth | 6.62% |
| Promoter Holding | 0% |
| 52-Week Range | ₹248 — ₹325 |
| Sector | Finance |
| Book Value | ₹91.74 |
Strengths
- Debt/Equity at 0.01 shows an exceptionally strong balance sheet with minimal leverage.
- ROCE of 22.62% indicates efficient use of capital despite the profit dip.
- Sales growth of 42.54% demonstrates business expansion and market traction.
- PEG ratio of 0.81 suggests reasonable valuation if earnings growth resumes.
Concerns
- Profit growth of -74.39% despite 42.54% sales growth signals severe margin erosion.
- Promoter holding at 0.00% indicates absence of aligned long-term ownership.
- P/E of 34.52 and P/B of 5.90 leave no margin of safety for a small-cap financial firm.
- Piotroski F-Score of 4/9 reflects weak overall financial health.
AI Analysis
Let me look at Prime Securities with a cold, analytical eye. At ₹286 per share, the market is paying ₹937 Crore for a company that just delivered ₹2 Crore net profit in its latest quarter. That is not value; that is hope. Sales grew 42.54%, but profits fell 74.39%—a classic margin compression that tells me the business is expanding turnover without pricing power or cost control. The P/E of 34.52 and P/B of 5.90 are steep, especially when book value is only ₹48.48. I am not buying assets; I am buying a story of future recovery. Yes, the balance sheet is solid: debt-to-equity of 0.01 and ROCE of 22.62% show capital efficiency. ROE of 13.82% is respectable but hardly spectacular. The Piotroski F-Score of 4/9 warns of weak fundamentals beneath the surface. Yet the most troubling figure is promoter holding at 0.00%. There is no owner at the wheel. In Graham's world, a business without committed promoters is a ship without a captain. The PEG of 0.81 might tempt growth investors, but with profits down so sharply, 'G' is unreliable. Dividend yield of 0.54% gives me almost nothing while I wait. This looks like a turnaround candidate—one where the market is pricing in a rebound that has not yet appeared. I would demand a wide margin of safety, and at this price, I do not see it. I will wait for margin recovery and some skin in the game before writing a cheque.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer