Brokerage firm CLSA has an “outperform” rating on the stock, while Citi, HSBC, UBS have a “buy” recommendation. Morgan Stanley has an “equalweight” rating. HSBC and UBS have also raised their price targets on the stock.
Q4 Results
ICICI Prudential AMC’s revenue remained flat on a sequential basis during the March quarter at ₹1,517 crore, while margins expanded by 120 basis points.Net profit for the period was down 17% from December due to market-to-market losses resulting in lower other income.
Its board has also approved an interim dividend of ₹12.4 per share.
Here’s a look at what analysts had to say:
CLSA
CLSA has an “outperform” rating on ICICI Prudential AMC with a price target of ₹3,730 per share, indicating an upside of 11.2% from its previous closing price.The brokerage said that excluding the market-to-market losses, operating profit for ICICI Prudential AMC increased by 2% sequentially.
Active equity AUM for the company went up by 2%, quarterly-average AUM grew by 3% quarter-on-quarter, and market share improved by 40 basis points, which, according to CLSA, is “healthy”, given the Macro backdrop due to the West Asia war.
ICICI Prudential AMC’s management commented that it is not witnessing any slowdown in equity sales in April either.
Citi
Citi has a “buy” rating on the stock with a price target of ₹3,900 apiece, indicating a 16.2% upside potential from its previous close.
The brokerage believes that the trends in average assets under management (AAUM) accretion, were sluggish on a sequential basis, largely led by tepid equity market sentiment and unfavourable mix shift driving marginal moderation in mutual fund yields.
ICICI Prudential AMC’s flow trends held up well, capturing robust performance trends of most schemes, Citi said. The management articulated concerted efforts towards expanding its product basket in SIF and alternates, which is likely to further fuel growth.
HSBC
HSBC has a “buy” rating on the ICICI Prudential AMC stock and has raised its price target from ₹3,600 to ₹3,800 apiece, indicating an upside potential of 13.3% from its previous close.
The brokerage said that market share gains in terms of its Assets Under Management is a positive. Additionally, yield levers and operating leverage will contribute to earnings growth over financial year 2027-2029.
UBS
UBS has a “buy” rating on the stock and has raised its price target from ₹3,320 to ₹3,900 apiece.
It said the company’s core performance was strong, franchise momentum was intact, while equity and hybrid segments outperformed.
While the company’s margins are improving, near-term yield headwinds are manageable, UBS said.
As a result, UBS has raised its financial year 2027 and 2028 estimates for its net profit by 4.9% and 2.2% respectively, led by higher AUM and adjusted for lower PMS and advisory AUM.
Morgan Stanley
The brokerage has a “equalweight” rating on the stock with a price target of ₹3,320 apiece, which is just a percent below its previous closing price.
Morgan Stanley said it likes the franchise but find the valuation to be full.
Of the 17 analysts who have coverage on the stock, 15 have a “buy” rating and two have a “hold” rating.
Shares of ICICI Prudential AMC were trading 3.1% lower at ₹3,249 apiece at 9.35 am on Wednesday.
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