PL Capital has initiated coverage on ICICI Prudential Asset Management Company (AMC) with a ‘Buy’ rating, with a target price of Rs 3,000, an upside of 39% from the upper price band.
The brokerage is optimistic about its business prospects given its strong performance and parentage, which is driving the highest net equity flow market share that is 17.5% in 8M FY26, among AMCs. Plus, the company has a superior equity yield of 67 bps due to the lowest distributor payout.
PL Capital on ICICI AMC: Consistent performance
ICICI AMC has shown the best performance in the 1-year bucket, while being ranked consistently among the top 3 in the 3-year bucket since February 2022. In terms of quintile, 90% of equity was in Q1 as of November 2025. Net equity flow market share in FY25 and 8M FY26 was highest among AMCs at 15.2% and 17.5%, compared to stock market share of 13.2% and 13.8%.
PL Capital on ICICI AMC: More risk-efficient
Further, its performance is more risk-efficient than peers due to lower concentration risk and SMID exposure. As of November 2025, its top 5 schemes contributed 53% to equity Monthly Average AUM, as against 64% for HDFC AMC and 71% for NAM. Also, despite having the largest equity MAAuM, ICICI AMC has the lowest SMID exposure at 36.4%
PL Capital on ICICI AMC: Taking support of ICICI Bank’s strong network
ICICI AMC accounts for 74% of Mutual Fund sales by ICICI Bank due to the latter’s closed architecture and a higher share of non-Mutual Fund revenue at 9.2% among peers. “We expect equity Average AUM CAGR over FY25-28 to be 2.5% higher than the industry, leading to core PAT CAGR of 18.5%,” added PL Capital.
PL Capital on ICICI AMC: Upper band at discount to peers
The upper price band of Rs 2,165 suggests that ICICI AMC is trading at an EPS valuation of 27x, indicating a 17% discount to HDFC AMC (32x) and 16% to Nippon Life India Asset Management (32x). ICICI AMC may eventually command a premium over HDFC AMC due to better distribution and diversification, while having similar profitability, said PL Capital.