Motilal’s target implies an upside of around 23% from Tuesday’s closing price.
The brokerage said ICICI Prudential AMC is India’s leading active asset manager, with mutual fund quarterly average assets under management (QAAUM) of ₹11.2 lakh crore.
The asset manager commands the highest market share in active mutual funds at 13.5% and equity-oriented hybrid funds at 26.6%, the brokerage said.
Its equity QAAUM grew at a 33% CAGR between FY21 and FY26 to ₹6.1 lakh crore, outpacing industry growth of 29% during the period.
Motilal Oswal said alternatives are emerging as a meaningful earnings driver for ICICI Prudential AMC, with QAAUM of around ₹79,450 crore contributing nearly 10% of operating revenue.
The brokerage expects the company’s higher-yielding PMS and AIF businesses, which generate net yields of around 95 basis points, to further diversify earnings and support long-term profitability. The integration of ICICI Venture and ISEC’s PMS businesses is also expected to aid growth.
Meanwhile, multiple growth engines across passive funds, SIFs, GIFT City and alternative investments, along with a strong product pipeline spanning life-cycle funds, contra funds, ETFs and private market strategies, could help the company benefit from evolving investor preferences beyond traditional mutual funds, Motilal Oswal said.
The brokerage also pointed to ICICI Prudential AMC’s strong revenue yields, supported by its leadership in higher-yielding active products and alternatives. Regulatory changes related to total expense ratios (TERs) have largely been passed on to distributors, with limited impact on profitability, while operating leverage is expected to improve as AUM scales up.
The structural shift towards retail participation in financial savings is another key growth driver. ICICI Prudential AMC contributed around 70% of incremental industry customer additions in Q1FY27, taking its customer base to 17.3 million.
Its SIP franchise held around 15.4% market share in flows in Q1FY27, the highest in the industry, while its extensive distribution network is expected to support long-term retail AUM growth.
Motilal Oswal estimates ICICI Prudential AMC’s revenue, EBITDA and PAT to grow at CAGRs of 14%, 13% and 15%, respectively, between FY26 and FY28.
ICICI Prudential AMC has relatively limited free float, with the majority of its equity still held by promoters.
As of the March 2026 quarter, promoters held an 87.59% stake in the company, leaving around 12.4% with public shareholders.
Among public shareholders, mutual funds held a 5.13% stake, insurance companies 1.16% and foreign portfolio investors (FPIs) 2.4%. More than 6 lakh retail shareholders with authorised share capital of up to ₹2 lakh collectively held a 1.5% stake.
Shares of ICICI Prudential AMC ended 1.4% lower at ₹3,092 on Tuesday. The stock has gained nearly 18% so far in 2026.
