Prudent Corp. (PRUDENT)
Fast GrowerFairStock Score: 36/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,257.1 |
| Market Cap | ₹13,486.57 Cr |
| P/E Ratio | 54.94 |
| ROCE | 44.06% |
| ROE | 42.64% |
| Dividend Yield | 0.11% |
| Profit Growth | 40.31% |
| Debt/Equity | 0.04 |
| Sales Growth | 24.68% |
| Promoter Holding | 55.31% |
| 52-Week Range | ₹2,121 — ₹4,105.5 |
| Sector | Capital Markets |
| Book Value | ₹213.18 |
Strengths
- ROE 42.64% and ROCE 44.06% show exceptional return on capital.
- Debt/Equity of 0.04 means minimal balance sheet risk.
- Consistent ~20% sales and profit growth, with latest quarter profit of ₹58 Cr on sales of ₹343 Cr.
- Promoter holding of 55.31% aligns owner interests with minority shareholders.
- Piotroski F-score of 7/9 indicates solid financial health.
Concerns
- P/E of 45.32 and P/B of 25.83 leave no margin of safety.
- PEG ratio of 2.27 suggests the price is ahead of even strong growth.
- Dividend yield of 0.11% provides negligible income while waiting.
- FairStock Score of 33/100 flags the stock as risky at current levels.
AI Analysis
Looking at Prudent Corp, I see a high-return financial distributor, not a boring one. Return on equity of 42.64% and ROCE of 44.06% are exceptional; with debt/equity at 0.04, that profitability is not borrowed, which tells me there is genuine customer demand or distribution strength. But I buy at a margin of safety. At ₹2,800.10, the market capitalizes the company at ₹9,730 Cr, which is 45.32 times earnings and 25.83 times book. Such multiples assume the 20.40% sales growth and 19.59% profit growth will continue for a long time. The PEG ratio of 2.27 makes the growth look overpriced rather than cheap. Graham would ask: is the current earnings power enough to support the price? Book value is only ₹108.42 per share, so buying at 25.83 times book is truly paying for future wealth, not assets. The 0.11% dividend yield offers almost no cash return while waiting. Latest quarter sales of ₹343 Cr and profit of ₹58 Cr are fine, but one quarter does not validate a 45 P/E. Piotroski F-score of 7/9 is decent, but not pristine. Promoter holding of 55.31% is positive; owner alignment exists. FairStock Score 33/100 calls it risky, and I agree. Despite the wonderful economics, my discipline requires a cheaper price. I would rather miss this train than overpay and wait years for earnings to catch up. This is a good business, but not a good buy at this price. I'd put it on my watchlist and revisit after a steep pullback.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer