ICICI Prudential AMC gains 2% after steady Q2 nos, positive analyst views

Post Q2, brokerages have shared a constructive view on ICICI Prudential AMC, with Jefferies saying the quarter was a beat led by higher revenue yield. It has kept Buy rating & raised target to ₹3,760.

ICICI Prudential Asset Management Company (AMC) shares gained as much as 2 per cent in trade on Tuesday following the announcement of second quarter results (Q2FY27). ICICI Prudential AMC stock opened on a positive note at ₹2,999.10 and surged to ₹3,018.10.

 

During the September quarter FY27, the asset management firm reported 6.1 per cent Y-o-Y rise in profit after tax at ₹889 crore on the back of higher revenue from operations. The company had logged a profit of ₹838 crore in the year-ago period.

 

Its revenue from operations increased 16.3 per cent to ₹1,674 crore in July-September FY27 from ₹1,439 crore a year ago.

 

 

The company's board also approved an interim dividend of ₹30 per equity share and fixed October 21 as the record date.

 

In the first half of FY27, the company's net profit increased 14.3 per cent to ₹1,854 crore from ₹1,622 crore in the year-ago period. Revenue from operations rose 17 per cent to ₹3,238 crore from ₹2,770 crore earlier. Check - TOP GAINERS NSE | TOP LOSERS NSE

 

Post earnings, brokerages have shared a constructive view on ICICI Prudential Asset Management Company, with Jefferies saying that the Q2 was a beat led by higher revenue yield. The brokerage has maintained 'Buy' rating on the stock, and raised the target price to ₹3,760 from ₹3,600.

 

The MF QAAUM in the quarter under review grew by around 4 per cent Q-o-Q to ₹11.6 trillion led by liquid (10 per cent), passives (4.6 per cent), and active equity (4. 4per cent), while revenue yields improved to 57.5bps.

 

Ebitda margin improved 20bps sequentially to 72.6 per cent, led by better-than-expected revenue growth.

 

According to ICICI Prudential AMC, while gross flows were stable, redemptions adversely affected net flows. Further, the composition of SIPs was seen shifting toward small and midcap funds.

 

Jefferies has increased its FY27-29e EPS estimates by 1-2 per cent, led by higher yields. 

 

Emkay Global has also reiterated its 'Buy' call on ICICI Prudential AMC, with a target price of ₹3,800. 

 

The management, it noted, has mentioned that it sees opportunities in the smallcap space and will gradually open up the midcap segment at an appropriate time. Baking in the 2Q developments, it has tweaked estimates marginally, resulting in largely unchanged PAT over FY27-29E. 

 

"Led by its strong brand and distribution, ICICI AMC is poised to drive profitable AUM growth," the brokerage said. 

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.