ICICI Prudential AMC shares get another bullish call; check CLSA's price target

Brokerage firm CLSA has initiated coverage on ICICI Prudential Asset Management Company (AMC) with an 'Outperform' rating and a price target of ₹3,500 per share.

The target implies a potential upside of over 11% from the stock's last closing level on Wednesday.

CLSA said ICICI Prudential AMC is one of India's largest and most profitable asset managers, with a stable market share of around 13% over the past decade.

The Indian mutual fund (MF) industry has grown at a compound annual growth rate (CAGR) of about 20% over the past decade, reaching ₹82 lakh crore in assets under management (AUM), providing a strong structural growth tailwind.

ICICI Prudential AMC has the largest actively managed AUM base, with a high equity mix. This enables it to deliver industry leading net revenue yields of around 50 basis points and operating profit yields of about 35 basis points, the brokerage said.

CLSA expects the company to deliver AUM growth of about 18% CAGR between financial year 2026 and financial year 2028, along with profit after tax growth of around 16%.

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Earlier on Wednesday, HSBC had initiated coverage with a 'Buy' rating and a price target of ₹3,600, citing expectations of outperformance on key operating and financial metrics, along with benefits from operating leverage.

Last week, Bernstein had also initiated coverage with an 'Outperform' rating and a price target of ₹3,500.

Of the 15 analysts covering the stock, 14 have a 'Buy' rating, while one has a 'Hold' recommendation.

Shares of ICICI Prudential AMC ended 4.31% higher at ₹3,140 on Wednesday. The stock has gained over 19% so far this year.