Aditya Birla Sun Life AMC (ABSLAMC IN) – Initiating Coverage – At an inflection point – BUY
Published on 28 Sep 2026
We initiate coverage on ABSLAMC with a ‘BUY’, valuing the stock at 27.5x on Sep’28 core EPS to arrive at TP of INR1,200. We are optimistic about its business prospects given the (1) improving equity performance, which is driving up net equity flow market share (1.2% FY27TD, 0.3% in FY26) (2) superior equity/debt/liquid yield at 70/25/14bps due to lower distributor payouts; and (3) focus on increasing non-MF revenue (3.1% in FY26), which has seen a healthy 24% CAGR over FY22-26. We expect equity AAuM growth of ~18% over FY27-29E that may translate to core earnings CAGR of ~20% (highest among listed peers). The stock is trading at 24/20x on Sep’28 core EPS (15% discount to HDFCAMC & 38%/35% discount to ICICIAMC/NAM). Initiate with ‘BUY’.
