Motilal Oswal's NEW Call: Prudent Corporate Advisory's Neutral Rating & INR 2,800 Target Price REVEALED!

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Updated on 12 Nov 2025, 03:37 pm

Prudent Corporate Advisory Services Ltd announced its operating revenue for the second quarter of fiscal year 2026, reaching INR 3.2 billion, which represents a 12% year-on-year growth and was in line with market expectations. This revenue increase was primarily driven by an 11% year-on-year surge in commission and fees income. For the first half of FY26, the company's operating revenue climbed 15% year-on-year to INR 6.1 billion.

Operating expenses rose by 14% year-on-year to INR 2.5 billion. This included a 17% increase in fees and commission expenses and an 11% increase in employee expenses, while other expenses remained flat. Despite increased costs, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew 5% year-on-year to INR 722 million, beating estimates by 6%. The EBITDA margin was reported at 22.6%, down from 24% in 2QFY25 but slightly above the estimated 22.3%.

Outlook: Motilal Oswal projects Prudent Corporate Advisory Services Ltd to achieve a Compound Annual Growth Rate (CAGR) of 22% for revenue, 22% for EBITDA, and 24% for Profit After Tax (PAT) between FY25 and FY28. The brokerage reiterates its Neutral rating on the stock with a Price Target (TP) of INR 2,800, based on 35 times the projected Earnings Per Share (EPS) for September FY27.

Impact: This detailed report from Motilal Oswal provides investors with a clear outlook on Prudent Corporate Advisory Services Ltd's financial trajectory and valuation. The reiterated Neutral rating and specific target price of INR 2,800 are key factors that could influence investor sentiment and the stock's trading behavior. Investors will likely assess the company's ability to meet the projected growth rates. Impact Rating: 6/10

Difficult Terms: CAGR: Compound Annual Growth Rate. It represents the average annual growth rate of an investment over a specified period longer than one year. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance, excluding the impact of financing and accounting decisions. PAT: Profit After Tax. This is the net profit remaining after all expenses and taxes have been deducted. EPS: Earnings Per Share. It is a company's profit divided by the number of its outstanding common shares, used to gauge profitability on a per-share basis. TP: Target Price. The price level at which a stock analyst or brokerage firm expects the stock to trade in the future.