Prudent Corporate jumps 14%, hits new lifetime high on healthy Q2FY25 results

So far this year, the stock has more than doubled or soared 151 percent

Shares of Prudent Corporate Advisory Services skyrocketed 14 percent to scale to an all-time high of Rs 3,090 per share on October 31 after it reported a strong second quarter performance.

In Q2FY25, the company’s operating revenue surged by 51 percent year-on-year to Rs 286.1 crore. This growth was fueled by a 53 percent rise in average quarterly assets under management (AUM) in the mutual fund segment, along with a 36 percent increase in revenue from non-mutual fund products.

The company's operating profit also increased by 59 percent YoY to Rs 68.7 crore. This growth surpassed revenue growth, supported by operating leverage, which lifted operating margins by 1.3 percentage points to 24 percent in September 2024.

Profit after tax for the quarter also surged by 69 percent YoY year-on-year to Rs 51.5 crore, fueled by strong operational performance and higher other income from treasury gains.

ALSO READ: What explains the surge in Prudent Corporate Advisory’s stock?

Prudent Corporate is a leading retail wealth management group, providing end-to-end solutions for distributing financial products to a diverse client base, including individuals, corporations, high-net-worth individuals (HNIs), and ultra-HNIs across India. With operations spanning 135 locations across 21 states and a strong digital presence, it is well-positioned in the wealth management landscape.

"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," said Sanjay Shah, Managing Director of Prudent Group.

Around 4 brokerages cover Prudent Corporate, with all of them recommending a strong 'buy' for the stock. So far this year, the stock has more than doubled or soared 151 percent, beating benchmark Nifty 50's 12 percent surge.

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