Canara Robeco Asset Management Company (CRAMC IN) – Q2FY26 Result Update – Better performance key to capture market share – BUY
Published on 31 Oct 2025
CRAMC saw a decent quarter as core PAT (adjusted of MTM gains/losses) increased by 7.7% QoQ & 25% YoY. Blended yields were steady QoQ despite (1) decrease in equity share in AUM mix by 120bps QoQ to 90.8% (2) telescopic pricing impact due to strong QAAUM growth of 7.8% QoQ (3) increase in liquid share QoQ to 6.3% from 5.3% in Q1FY26, suggesting some pass through of telescopic pricing to distributors. Performance in 1-yr bucket has been decent that was maintained in Q2FY26. Net equity flow market share has remained steady at 1.3% in H1FY26 while SIP market share was 2.6% (similar to stock equity market share). Our estimates remain unchanged, and we see healthy core earning CAGR of 17% over FY25-28E. While stock has run-up from the issue price of Rs266 we continue to remain positive on CRAMC; stock is trading at 23.8x on Sep’27 core ABV. We increase multiple on FY27E core EPS to 26x from 24x and raise TP to Rs350 from Rs320. Retain ‘BUY’.
