Neutral Prudent Corporate Advisory; target of Rs 2200: Motilal Oswal

Neutral

Motilal Oswal's research report on Prudent Corporate Advisory

Prudent reported operating revenue of INR2.9b, +36% YoY (in line) in 3QFY25, driven by 36% YoY growth in commission and fees income to INR2.8b. For 9MFY25, operating revenue rose 45% YoY to INR8.2b. EBITDA grew 32% YoY to INR659m (6% miss), with EBITDA margin of 23.1% (vs. 23.8% in 3QFY24 and 24.0% in 2QFY25). Operating expenses increased by 37% YoY to INR2.2b (in line), led by 49%/25% YoY growth in commission & fees expenses/ employee expenses. PAT rose 35% YoY to INR482m in 3QFY25 (8% miss). For 9MFY25, PAT increased 53% YoY to INR1.4b.

Outlook

The company is expected to maintain RoE of 30%+ for FY25/FY26/FY27. We reiterate our Neutral rating on the stock with a TP of INR2,200 (based on 33x EPS Sep’26E).

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Prudent Corporate Advisory_29012025_Motilal Oswal