ICICI Prudential AMC Soars: Prabhudas Lilladher Lifts Target to ₹3300

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AuthorRiya Kapoor|Published at:
ICICI Prudential AMC Soars: Prabhudas Lilladher Lifts Target to ₹3300
Overview

Prabhudas Lilladher reiterates a 'BUY' rating on ICICI Prudential Asset Management Company, raising the target price to ₹3300. The brokerage cited strong quarterly performance, including 7.3% sequential growth in equity AUM, increased market share in equity flows, and improved core income. The report also highlighted the reappointment of Sankaran Naren and factored in potential yield declines.

ICICI Prudential AMC Earns 'BUY' Call With ₹3300 Target

Prabhudas Lilladher has reiterated its 'BUY' recommendation for ICICI Prudential Asset Management Company (ICICIAMC), boosting the target price to ₹3300 from ₹3000. The upgrade follows a robust quarterly performance marked by significant growth in assets under management and market share gains.

Strong AUM Growth Fuels Outlook

The asset manager's equity Assets Under Management (AUM) surged by 7.3% sequentially, outperforming the industry's 5.1% growth. This robust expansion contributed to a 6.1% rise in core income, primarily driven by a 12% reduction in operating expenses and a 2% increase in net revenue. Despite a slight dip in mutual fund yields to 47.6 basis points, the company maintained a stable non-mutual fund revenue share of approximately 9%.

Market Share Expansion

ICICI Prudential AMC solidified its position by securing the highest market share in net equity flows, reaching 18.2% in the first nine months of fiscal year 2026. Consequently, its overall stock market share in equity assets grew by 28 basis points quarter-on-quarter to 13.9%. The report suggests ICICIAMC is well-positioned to absorb the impact of the 5 basis points Total Expense Ratio (TER) reduction due to lower commission payouts and reduced net distribution share in equity products.

Risk Mitigation and Earnings Revision

The reappointment of Mr. Sankaran Naren as Executive Director for a two-year term, effective July 1, 2026, addresses key managerial personnel (KMP) risk. Prabhudas Lilladher has consequently revised its core earnings per share (EPS) forecasts for FY27 and FY28 upwards by 5.7% and 6.8%, respectively. The target multiple for September 2027 core EPS has also been adjusted to 39.0x from 38.0x.

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