Prudent Corporate Advisory jumps 12% to hit 52-wk high on strong Q2 numbers

During the Q2FY25, the company's profit after tax rose by 69 per cent Y-o-Y to Rs 51.5 crore, driven by robust operational growth and increased other income from treasury gains

Shares of retail wealth management company Prudent Corporate Advisory Services climbed 11.63 per cent to a 52-week high of Rs 3,029.20 on the NSE during early trade in an otherwise weak market on Thursday. The uptick in the company’s stock price follows its strong financial results for the second quarter of the fiscal year 2024-25.

 

On October 30, the company informed the exchanges that its revenue from operations in Q2FY25 grew 51 per cent year-on-year to Rs 286.1 crore, driven by a 53 per cent increase in quarterly average AUM in the mutual fund segment, coupled with a 36 per cent growth in revenues from non-mutual fund products.

 

Prudent Corporate Advisory Services’ operating profit increased by 59 per cent Y-o-Y to Rs 68.7 crore. This growth outpaced revenue growth due to operating leverage, with operating margins rising by 1.3 percentage points to 24 per cent in September 2024. During the quarter, profit after tax rose by 69 per cent Y-o-Y to Rs 51.5 crore, driven by robust operational growth and increased other income from treasury gains.

 

Commenting on the results, Sanjay Shah, Managing Director of Prudent Group, said, “Adoption of mutual funds is growing at an exponential pace. The unique mutual fund investor count for the industry surpassed the mark of 5 crores in the month of September. In the last three months, the monthly addition of unique investors is at a run rate above 10 lakhs. This accelerated adoption of mutual funds is a great tailwind for Prudent and is reflected in our numbers. In the first half of FY25, our net equity sales reached Rs 5,700 crore, amounting to nearly 93 per cent of the total net sales achieved in all of FY24. In this phase of Amrit Kaal, where per capita income is set to grow 10x in the next twenty-five years, Prudent will have significant growth leeway.”

 

Prudent Corporate Advisory Services (Prudent) is a retail wealth management services group based in India. The company is among the top mutual fund distributors in terms of assets under management (AUM) and commission received. With its unique business-to-business-to-consumer (B2B2C) model and through its technology-enabled, comprehensive investment and financial services platform, Prudent provides end-to-end solutions essential for financial products distribution to individuals, corporates, high-net-worth individuals (HNIs), and ultra-HNIs in India. The company operates through 135 locations across 21 states and has a robust digital presence.

 

As of October 31, 2024, Prudent Corporate Advisory Services boasts a market capitalization of Rs 11,993.03 crore on the NSE. The company is a constituent of major indexes.

 

Shares of Prudent Corporate Advisory Services have yielded a return of a whopping 141 per cent year-to-date.

 

The company’s stock has a 52-week range of Rs 3,029.20 - Rs 1,093.55 on the NSE.

 

At around 10:10 A.M on Thursday, the company’s shares were quoted at Rs 2,894.85, up 6.69 per cent from their previous close on the NSE. A combined total of nearly 0.01 million shares of Prudent Corporate Advisory Services, worth around Rs 47.87 crore, exchanged hands on the BSE and NSE.