Prudent Corp Q1- Systematic, MTM Increase In AUM, Insurance Cross Sales Setup Strong Results: ICICI Securities

ICICI Securities Report

Prudent Corporate Advisory Services Ltd. has progressed well in terms of assets under management growth aided by mark-to-market, traction in SIP and growth in MFDs. AUM/SIP book/MFD count clocked compound annual growth rate of 31%/28%/21% between FY19–24 and grew by 16%/8%/3% in Q1 FY25.

As yield consolidates, post removal of the B-30 incentive, we sense a possible upgrade in our earnings estimates driven by overall macro tailwinds and superior execution. Possible upside risks emanate from continued traction in SIP (45% of client base is yet to have an SIP scheme) and spike in insurance cross-sales.

Higher mix of equity within AUM (96.78%) lends higher growth potential for Prudent compared to other AMCs. Any MTM fall in AUM poses a downside risk. Maintain 'Add'.

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