Prudent Corporate Advisory Services IPO: How good is it?

In our previous part of Prudent Corporate IPO story, we read about the key details of the IPO. Here we will answer some questions about Prudent Corporate and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. The company's earnings before profit were Rs 60.5 crore in FY21. 2) Will Prudent Corporate be able to scale up its business? Yes. Given the significant under penetration in mutual funds, the increasing share of national distributors in mutual funds distribution and the large presence of the company, it will be able to scale up its business. 3) Does the company have recognisable brands truly valued by its customers? Yes. Prudent Corporate leverages its 'Prudent' brand to offer technologically driven solutions through its platforms 'FundzBazar', 'PrudentConnect', 'Policyworld', 'WiseBasket', 'Prubazar' and 'CreditBasket'. 4) Does Prudent Corporate have high repeat customer usage? Yes. The company receives regular SIP inflows from retail investors and moreover, the MFDs bring many customers to the company's platform. 5) Does the company have a credible moat? No. Although the company has strong brand recognition, several other well-recognised distributors offer similar products and enjoy a bigger slice of the pie. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? No. The company is susceptible to regulatory rulings that reduce the total exchange ratio of mutual funds, which in turn, could reduce the company's revenue. 7) Is the company's business immune to easy replication by new players? No. New players can and have entered t