ICICI Prudential Asset Management Co. (ICICIAMC IN) – Company Initiation – Position of dominance due to strong fundamentals – BUY
Published on 17 Dec 2025
We initiate coverage on ICICIAMC with ‘BUY’ rating, valuing at multiple of 38x on Sep’27 core EPS to arrive at TP of Rs3,000. We are optimistic about its business prospects given (1) its strong performance/parentage which is driving the highest net equity flow market share (17.5% in 8MFY26) among AMCs; (2) its superior equity yields of 67bps due to lowest distributor payout; (3) it accounts for 73.7% of MF sales by ICICIBC due to the latter’s closed architecture; and (4) a higher share of non-MF revenue at 9.2% among peers. We expect equity AAuM CAGR over FY25-28E to be 2.5% higher than industry, leading to core PAT CAGR of 18.5%. Upper band of Rs2,165 suggests a valuation of ~27x on Sep’27 core EPS indicating 17%/16% discount to HDFCAMC (32x) and NAM (32x). ICICIAMC may eventually command a premium to HDFCAMC due to better distribution and diversification while having similar profitability.
