ICICI Prudential AMC gets 'Long' rating from Equirus; 34% upside potential

ICICI Prudential AMC will list on exchanges on Friday, Dec 19. The initial public offering was subscribed 39.17 times on the final day. Qualified institutional investors led the subscription in the IP

Equirus Securities started coverage on ICICI Prudential Asset Management Company (AMC) with a bullish call as it expects the company to deliver industry-leading profit growth. The brokerage has given ‘Long’ rating for the stock  and a target price of ₹2,900, which indicates an upside potential of 34 per cent from its issue price of ₹2,165 apiece. 

 

ICICI Prudential AMC will list on exchanges on Friday, December 19. The initial public offering was subscribed 39.17 times on the final day. Qualified institutional investors led the subscription in the IPO, followed by non institutional and retail investors. 

 

ICICI Prudential AMC leads profitability in the mutual fund industry with the highest net profit market share of 17.4 per cent in the financial year 2025. Equirus Securities expects that ICICI Prudential will likely report 16 per cent revenue and profit after tax (PAT) compound annual growth rate (CAGR) from financial year 2025 to 2028.    CATCH ICICI Prudential listing LIVE Updates

 

ICICI Prudential AMC’s assets under management will likely grow at 18.6 per cent compound annual growth rate (CAGR) from the financial years 2025 to 2028, Equirus Securities said. Resilient equity inflows, rising passive penetration, and sustained Alternate Investment Fund  (AIF) and portfolio management services (PMS) will assist ICICI Prudential AMC to report the projected growth rate. 

 

At 30 times earnings-per-share estimate for financial year 2027, ICICI Prudential AMC has attractive valuations, according to Equirus Securities. The stock is seen at a discount compared to its closest peers despite strong profitability, superior equity market share, and better retention. 

 

ICICI Prudential AMC is India’s largest equity-focused asset manager with 13.4 percent equity assets under its management because of strong retail and high-net worth individual participation, and a robust Special Investment Funds franchise with over 16 per cent monthly systematic flow, Equirus Securities said. 

 

Its equity AUMs have grown at a 27 per cent Compound Annual Growth Rate (CAGR) since financial year 2015 while it sustained a higher-yielding mix and reinforced a long-term positioning, the brokerage said.

 

Despite growing competition, ICICI Prudential AMC has maintained 12–13 per cent overall market share based on its resilient distribution channels and customer franchise, Equirus Securities said.

 

The company is also rapidly scaling its non-mutual fund business with yield over 120 basis points, which is further boosting blended profitability.  

 

Key risks for ICICI Prudential AMC are  market volatility, total expense ratio (TER) related regulatory changes, scheme under performance and Specialised Investment Funds fetching more share in portfolio management services, according to Equirus Securities.   Disclaimer: View and outlook shared on the stock belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.