Wednesday, July 15, 2020

Prime Securities : Emerging Value.

NB:The Owner Creator and/or contributor of this blog is neither a research analyst nor an Investment Advisor . The views expressed by him on stock markets and equities are purely as an Investor/trader in Indian equities.  This blog owner /creator will not be responsible for any loss arising out of any post or opinion on this blog. Please do your own research and/or consult your investment advisor before acting on any such information.

Prime Securities Ltd

1. Managed by an experienced  team led by 2 very prominent financial markets professionals- N Jayakumar and Akshay Gupta. Between both of them, they have immense  experience in investment banking, asset management, capital markets and commercial banking. They have significant shareholding in the business.

2. Team expansion in the last 2 years to include multi-sector, multi-dimension professionals. E-Sops driven model for variable rewards and loyalty. Team size of ~ 15 highly experienced and prominent frontline Bankers along with another ~15 support staff and analysts.

3. Pure Advisory businesses ranging from equity and debt capital markets, corporate finance, restructuring, insolvency M&As, PE investments. Hence, capital accretion only to be used for return to shareholders.

4. return/reward to shareholders in some form in the future highly likely.

5. Almost a Crisis proof business as it covers corporate and institutional clients across all life-cycles and most sectors.

6. Quality and Marquee clients, where mandated advisory and investment banking fees is virtually guaranteed and hence receivables are close to NIL

7. Some of their team members are working for last 20 years.

8. Deal pipeline and revenue visibility for next 12-18 months. Fixed expenses(mainly employee) as a percentage of revenue amount to only 25% in the last 3 years, Hence high PBT and steady ROEs. Annual expenses of only Rs 25 Cr in FY20.

9. USD 10 million dollars of fees in FY 20 which was 58% higher than FY19 and Cash profit of almost USD 5 million, which was higher by 114% over FY19.

10. A flexible fleet-footed organisation that recognizes challenges and adapts quickly .

All The best with your trading and investment !! Carpe Diem . 

Source : Scuttlebutt , Conversations with industry peers ,HOS , Data in the public domain .