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Centrum said ICICI Prudential AMC is a key beneficiary of the structural growth in India's mutual fund industry, which has seen a sharp expansion in quarterly average assets under management in recent years.
The brokerage said that the company has strengthened its leadership position, with QAAUM rising at a strong 33% CAGR between FY23 and FY25 to ₹8.8 lakh crore. This makes it the second largest AMC in the country with a market share of around 13% and a leadership position in active mutual funds.
Equity QAAUM has grown even faster, clocking a 40% CAGR to ₹4.9 lakh crore, aided by strong scheme performance and a large investor base of about 15 million. Centrum expects overall QAAUM to grow at a 19% CAGR over FY25 to FY28E.
The brokerage also said that ICICI Prudential AMC's dominance in the individual investor segment. The company has the largest individual investor franchise with ₹6.6 lakh crore in MAAUM and a 13.7% market share.
This has been driven by rising SIP inflows, which increased to ₹4,800 crore in September 2025, and a steadily expanding systematic investor base. About 92.5% of the 14.2 million SIPs have tenures of more than five years, pointing to strong long term participation.
Centrum added that ICICI Prudential AMC has a larger AIF and PMS franchise than its peers, with combined QAAUM of ₹72,900 crore. The company also offers the widest mutual fund product bouquet in the industry with 143 schemes, ensuring diversification. No single scheme contributes more than 7.1% of total QAAUM, which limits concentration risk.
Its distribution network remains extensive, led by more than 0.1 million mutual fund distributors, 213 national distributors and 67 banking partners. On an equity MAAUM basis, the direct share stands at 30%, higher than the industry average of 28%, while on an overall basis it is 48% compared with the sector average of 47%.
Despite operating on a relatively larger equity AUM base, ICICI Prudential AMC has consistently maintained equity yields above 60 basis points, outperforming HDFC AMC by about 2 basis points.
It also operates with the lowest distributor payout ratio among peers. In FY25, the payout stood at 53 basis points, compared with 56 to 91 basis points for other listed AMCs, reflecting stronger unit economics.
The company reported a 24% revenue CAGR between FY21 and FY25 to ₹4,680 crore and a 21% CAGR in profit after tax to ₹26,500 crore, outperforming listed peers. Centrum expects profit to continue growing at a healthy pace, with PAT projected to rise at a 15% CAGR to around ₹4,000 crore by FY28E.
Earlier, Equirus Securities had initiated coverage on ICICI Prudential AMC with a 'Long' rating and a price target of ₹2,900. PL Capital, part of the Prabhudas Lilladher Group, also initiated coverage with a buy rating and a price target of ₹3,000, indicating an upside of up to 40% from the issue price.
ICICI Prudential AMC made a strong stock market debut on Friday, listing at a premium of over 20% to the issue price, as investors bet on sustained domestic inflows into mutual funds.
The stock debuted at ₹2,600 per share on the National Stock Exchange, a 20.09% premium over the upper end of the IPO price band of ₹2,165. The ₹10,603 crore public issue was priced in the range of ₹2,061 to ₹2,165 per share.
Following the listing, ICICI Prudential AMC has emerged as India's most valuable listed asset management company, ahead of HDFC Asset Management Company with a market capitalisation of about ₹1.12 lakh crore and Nippon Life India Asset Management, which is valued at around ₹56,000 crore.
