Prudent Corporate IPO buy, sell or hold after listing

 Prudent Corporate Advisory Services Limited was unable to attract Indian investors. If we go by the subscription data of Prudent Corporate Advisory Services Limited IPO, the offer worth ₹538.61 crore has been subscribed 1.22 times out of which the retail portion has been subscribed 1.29 times. From this, it is understood that listing from Prudent Corporate IPO cannot be expected and IPO traders are likely to be disappointed. Now it is important to understand that investors and traders who got allotment in Prudent Corporate IPO should hold and sell Prudent Corporate stock after listing? Or those who want to invest in the stock of Prudent Corporate, then at what price can they invest after IPO listing? Let us try to find out the answer of this question in easy language for the viewers of our website.

Prudent Corporate Stock holds or sell:

There is no any question on the company fundamental and business model. Anand rathi is another listed company into the Indian stock market which is into to the similar business  of retail wealth management services. But it will not be good to compare Anand Rathi Services Company with Prudent Corporate Advisory Services because Anand Rathi has very strong fundamentals as well as very long track record of company management.

If we will check the products & services of Prudent Corporate Advisory  then it includes Mutual Fund products, Life and General Insurance solutions, SIP with Insurance, Gold Accumulation Plan, Stock Broking services,  Asset Allocation, and Trading platforms. The products & services which Prudent Corporate Advisory Services offers it is getting good competition into the Indian market and entry of the new players into same market is also not a difficult task but still meeting up with the compliances will be the biggest challenge for the new entrants. As per company data, Prudent Corporate Advisory Services offers wealth management services to more than 13,51,270 unique retail investors with the help of more than  23,260 channel partners with the network of Bto B & Bto C . Company has also 110 branches in 20 Indian states with 1,067 employees strength, 35.05lacs  present  folios and 15.25 lacs present  SIPs as of December 31, 2021.

Financials of Prudent Corporate:

Company Total assets have been increasing from 31 march 2019 to 31 Dec 2021 i.e 1932 million to 3873 million.

At Revenues front, Company had also show some growth   from march 2019 to December 2021 revenues increased from 2250 million to 3279 million with increase in Profit after tax in the same financial year period of March 2019 to Dec 2021 i.e 210 million to 576 million.

Point to be noted in  Prudent Corporate Stock:

(a) 

As Per our research Prudent Corporate stock is only for the long term investors. If Any of investors had applied to its IPO just for the listing gains then It was not a good strategy. Such kind of companies gives good returns but takes long time . At the IPO price band of 595rs to 630rs per share, this issue was already very expensive . This stock was not for short term investors. As per our calculation, Prudent Corporate IPO price was already came on FY23-24 earnings base. Company management had not left more juice for the IPO investors or traders after its listing. In Esy words we can say that Valuations of Prudent Corporate stock at IPO price is very high. 

(b)

At present time, Mood of the Indian stock market is not good and we may see huge volatility into the Indian stock market in coming months. 

(c)

Prudent Corporate company has leadership into the mutual fund market but also more dependence on this financial product too. It is also very risky factor but other financial products and services also contribute more into the revenues and profit growth of the company and management has also more focus on other products and looking to expand its market in the future. It is a good sign but it will not happen into few months or weeks.

(d)

Free cash flow, good profit  & strong financial track record gives good hope to the long term investors. Company had also acquired karvy broking mutual fund business in the past  which may provide growth to the company. So we can say that there is organic as well as inorganic growth in the company. 

(e)

Change into the regulations in the company time, it is one of the biggest challenge for the company . For example : How much commission mutual funds can give ? We can say that more investors friendly regulations which lead to more challenges for Mutual fund companies as well as distributors. 

Recommendation on Prudent Corporate stock:

If you are long term investor then you can hold Prudent Corporate stock if you will not get listing gains but in any case if you get listing gains then try to  book on higher levels. It is better to start accumulate this stock at lower levels after IPO listings for long term point of view i.e 1 to 2 years point of view.

It is not advisable to buy Prudent Corporate stock after listing at higher levels.

Long term targets of Prudent Corporate stock:

As per our calculations and Personal view Prudent Corporate stock may reach the price target of 700rs + in the company months but it is better to buy this stock  at lower levels and then think about the above price targets for Prudent Corporate stock.