Prudent Corp Share Price Falls To Six-Month Low Post Q3 Profit Decline

Shares of Prudent Corporate Advisory Services Ltd. fell over 12% to hit an over six-month low on Tuesday after it reported a decline in net profit in the third quarter of this fiscal. In addition, the volume was also high.

The retail wealth management firm reported a 6.4% fall in net profit to Rs 48.2 crore, in comparison to Rs 51.5 crore reported in the previous quarter. Revenue for the quarter declined 0.4% to Rs 285 crore against Rs 286 crore reported in the quarter ended September 2024.

Operating income, or earnings before interest, taxes, depreciation, and amortisation fell 4.1% to Rs 65.9 crore, against Rs 68.7 crore in the last quarter. The margin contracted to 23.1% from 24% in the second quarter of this fiscal.

Net sales of Prudent Corporate Advisory Services in the first nine months of this financial year rose 144% to Rs 9,310 crore, the company said in a press release on Monday. The systematic investment plan book rose by 44% year-on-year in December reaching Rs 935 crore. The wealth management firm's SIP flows in the industry stood at 3.5% in December.

Shares of Prudent Corporate Advisory Services fell as much as 12.43% to Rs 2,065 apiece, the lowest level since July 2024. It pared losses to trade 8.17% lower at Rs 2,165.55 apiece, as of 9:55 a.m. This compares to a 0.17% decline in the NSE Nifty 50.

The stock has risen 74.98% in the last 12 months. Total traded volume so far in the day stood at 14 times its 30-day average. The relative strength index was at 25, indicating that the stock is oversold.

Out of six analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 56.6%.