ICICI Prudential AMC well placed to ride MF boom, Motilal Oswal says with ₹3,500 target

Brokerage firm Motilal Oswal has initiated coverage on ICICI Prudential Asset Management Company with a ‘Buy’ rating and a one-year price target of ₹3,500 per share, implying an upside of about 21% from current levels.The brokerage said in its note that ICICI Prudential AMC is India’s second-largest asset manager and the largest in active mutual fund QAAUM (Quarterly Average Assets Under Management), with a 13.5% market share and ₹9.1 trillion in QAAUM as of December 2025.

Founded in 1998, the company has built a diversified and consistently profitable platform, backed by promoters ICICI Bank and Prudential Corporation Holdings.
Motilal Oswal believes the company is well placed to benefit from the structural growth of India’s mutual fund industry, with overall QAAUM expected to grow at a 17% CAGR over FY26-28, supported by rising financialisation and increasing retail participation.ALSO READ | Trade Setup for March 27: Nifty needs to cross this important hurdle to move back to 24,000The brokerage also pointed to strong fund performance, with over 80% of AUM in the top two quartiles on a one-year basis since April 2025, and more than 50% on a three-year basis since December 2023.

It expects the company to deliver a revenue CAGR of 15% over FY26-28, driven by steady equity and SIP inflows, a shift towards higher-yielding non-mutual fund products, and operating leverage.

EBITDA margins are seen sustaining above 70%, with core profit expected to grow at a 16% CAGR during the same period.

Since its listing, ICICI Prudential AMC has become the most valuable listed asset manager in India, with a market capitalisation of around ₹1.43 lakh crore, ahead of peers such as HDFC Asset Management Company and Nippon Life India Asset Management.

Shares of ICICI Prudential Asset Management Company ended 3.9% higher at ₹2,901.80 on Wednesday.