According to the brokerage, ICICI Prudential AMC is set to outperform peers on key operating and financial metrics over the medium term. It is also well-positioned to manage yield pressure while benefiting from positive operating leverage.
HSBC expects core earnings per share (EPS) growth to track assets under management (AUM) growth and believes the company is well-placed to capture additional market share over the medium term.
It has estimated a 20% compound annual growth rate in total AUM between financial year 2026 and financial year 2029.Last week, Bernstein had initiated coverage on the stock with an ‘Outperform’ rating and a price target of ₹3,500.
Bernstein valued the company at a premium to peers, while remaining in line on a core profit multiple basis, factoring in its strong operating metrics and relatively larger alternatives business.
However, the brokerage said that key person risk is more pronounced compared to peers, given the central role played by the Chief Investment Officer in driving fund performance. While near term stability remains intact, it flagged succession planning as a potential long term concern.
That said, Bernstein added that the company’s culture of promoting internally groomed talent could help maintain continuity in investment style and performance.
Shares of ICICI Prudential Asset Management Company ended 4.97% higher at ₹3,050 on Tuesday. The stock has risen 16% so far this year.
