Morgan Stanley has initiated coverage on ICICI Prudential AMC with an overweight rating and a target price of ₹3,500 per share, citing strong positioning for industry-leading profit growth.
The brokerage highlighted ICICI Prudential AMC’s leadership in active equity mutual funds and alternative investment products as key drivers of its growth outlook. Morgan Stanley expects the company’s equity assets excluding ETFs to rise to 63%, improving revenue quality and margins.
Net operating revenue is projected to grow at a 22% CAGR, supported by steady inflows, scale benefits and diversification across higher-margin product categories. The brokerage also sees strong growth in PMS and AIF revenues, which should further enhance profitability.
Morgan Stanley believes ICICI Prudential AMC is well positioned to benefit from structural growth in India’s asset management industry, with its product mix and distribution strength supporting sustained earnings momentum.
Disclaimer: The views and recommendations above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
