Prudent Corporate Advisory Services (PRUDENT IN) – Initiating Coverage – Size and distribution to drive market share gains – BUY
Published on 30 Mar 2026
We initiate coverage on PRUDENT with ‘BUY’, valuing at multiple of 31x on Mar’28 core EPS to arrive at TP of INR 2,600. We are optimistic about its business prospects given (1) indirect equity AuM (76% share) for the MF industry is slated to grow at 18-20% on low MF penetration, (2) it is the 5th largest distributor with technology and distribution edge, which could bode well in the new TER regime, under which the industry could see consolidation, (3) pricing power has shifted from banks to MFDs as the latter are scaling up faster (4) AuM is distributed with top-8 AMCs contributing 68%, thereby partially mitigating performance risk that AMCs are exposed to, and (5) it has ability to pass on the impact of commission cuts. Currently, stock is valued at 25.6x on Mar’28 core EPS.
