Neutral Prudent Corporate Advisory; target of Rs 2800: Motilal Oswal

Motilal Oswal's research report on Prudent Corporate Advisory

Prudent Corporate Advisory (Prudent) reported an operating revenue of INR3.2b, +12% YoY (in-line) in 2QFY26, fueled by an 11% YoY surge in commission and fees income. For 1HFY26, it grew 15% YoY to INR6.1b. Operating expenses grew 14% YoY to INR2.5b (in-line); fees and commission expenses rose 17% YoY, employee expenses grew 11% YoY, and other expenses were flat YoY. EBITDA grew 5% YoY to INR722m (6% beat), reflecting an EBITDA margin of 22.6% (vs. 24% in 2QFY25 and our est. of 22.3%).

Outlook

We expect Prudent to deliver a revenue/EBITDA/PAT CAGR of 22%/22%/24% over FY25-28. We reiterate our Neutral rating with a TP of INR2,800 (based on 35x EPS Sep’FY27E).