Motilal Oswal Initiates 'Buy' on ICICI Pru AMC, Targets ₹3,500 With 21% Upside

BROKERAGE-REPORTS
Whalesbook Logo
AuthorRiya Kapoor|Published at:
Motilal Oswal Initiates 'Buy' on ICICI Pru AMC, Targets ₹3,500 With 21% Upside
Overview

Motilal Oswal has initiated coverage on ICICI Prudential Asset Management Company with a 'Buy' rating and a ₹3,500 price target, expecting a 21% increase. The brokerage notes ICICI Prudential AMC's solid position as India's second-largest asset manager. It is poised to benefit from the mutual fund industry's projected 17% annual growth through FY28, fueled by rising savings and more retail investors.

Motilal Oswal Starts ICICI Pru AMC Coverage with 'Buy' Rating

Motilal Oswal has initiated coverage on ICICI Prudential Asset Management Company (AMC), assigning it a 'Buy' rating and a price target of ₹3,500 per share for the next year. This target suggests an upside potential of around 21% from its current trading level.

Market Leader Poised to Grow With Industry

Motilal Oswal pointed to ICICI Prudential AMC's strong position as India's second-largest asset manager and the leader in active mutual fund assets. Holding a 13.5% market share with ₹9.1 trillion in assets under management as of December 2025, the company is set to benefit from the Indian mutual fund industry's projected 17% compound annual growth rate through FY28. This growth is expected to be driven by more people saving financially and increased retail investor involvement.

Fund Performance and Financial Forecast

Motilal Oswal's analysis showed strong fund performance, with over 80% of its Assets Under Management (AUM) ranked in the top quartiles over one year as of April 2025. Looking at financials, the firm forecasts a 15% revenue CAGR and 16% core profit growth from FY26 to FY28. Key drivers include steady equity and SIP inflows, a shift toward more profitable non-mutual fund products, and advantages from operating leverage.

Profitability and Current Valuation

EBITDA margins are expected to stay strong, holding above 70%. Since its listing, ICICI Prudential AMC has become India's most valuable listed asset manager, boasting a market capitalization of roughly ₹1.43 lakh crore and outperforming competitors. The company's shares ended Wednesday's trading session up 3.9%, closing at ₹2,901.80.

Disclaimer:This content is for informational purposes only and does not constitute financial or investment advice. Readers should consult a SEBI-registered advisor before making decisions. Investments are subject to market risks, and past performance does not guarantee future results. The publisher and authors are not liable for any losses. Accuracy and completeness are not guaranteed, and views expressed may not reflect the publication’s editorial stance.