ICICI Prudential Asset Management Company Sees Target Price of Rs 3585, Says Prabhudas Lilladher
Detailed Analysis
ICICI Prudential Asset Management Company Sees Steady Quarter, Raises Target Price
ICICI Prudential Asset Management Company (ICICIAMC) has reported a steady quarter, with core income reaching INR 11.3 billion, in line with expectations. The company's revenue was lower due to a quarter-over-quarter (QoQ) increase in the share of liquid/ETF, which was offset by a decrease in staff costs. Additionally, deferred employee costs are being replaced by fresh Employee Stock Option Plans (ESOP), which will result in a non-cash charge.
The company's market share in net flows remains the highest at 18.9% in the first 11 months of FY26, driven by strong equity performance in 1/3-year buckets. As a result, the stock market share in equity increased by 35 basis points (bps) QoQ to 14.3%. The company's operations expenses (opex) estimates remain unchanged.
Outlook and Recommendation
ICICIAMC is expected to better navigate the impact of new TER (Total Expense Ratio) guidelines due to its lower payout. The research firm has factored a 1.5bps decline in equity yields over FY26-28E. Based on this analysis, the target price for ICICIAMC has been raised to INR 3,585 from INR 3,500, with a multiple of 40x on Mar'28 core earnings per share (EPS). The recommendation remains 'BUY'.
| Company | Net Flows (11MFY26) | Market Share | | --- | --- | --- | | ICICIAMC | 18.9% | 14.3% | | | | |
Note: The above table illustrates the market share of ICICIAMC in net flows and equity market share as of 11MFY26.
Investor Takeaway
Investors should consider buying ICICI Prudential Asset Management Company due to its strong equity performance and ability to navigate new TER guidelines.
