Canara Robeco Asset Management Co. (CRAMC IN) – Company Initiation – Better performance could drive earnings upgrade – BUY
Published on 15 Oct 2025
We initiate coverage on CRAMC with ‘BUY’ rating as we are optimistic about its business prospects given that (1) better equity performance could lead to increase in net equity flow market share (1.3% in H1FY26) and, in turn, improve stock market share, which may translate to AAuM CAGR of 20% over FY26-28E (~3% higher than industry); (2) higher equity share of 90% could lead to higher core earnings as we are positive on Indian equities over the medium & long term and (3) telescopic pricing would have a limited impact on equity yields as commission payout is high at 70%+. We see healthy core earnings CAGR of 17% over FY25-28E, better than listed peers. Upper band of Rs266 suggests a value of 19.6x on Sep’27 core EPS (UTIAM: 16.7x, ABSLAMC: 22.7x), indicating 42.5% discount to NAM. We assign 24x multiple to arrive at TP of Rs320; CRAMC is attractive in the small-cap space. Initiate with ‘BUY’.
