Emkay Global Financial' research report onICICI Pru AMC
ICICIAMC delivered steady performance in 2QFY27, with MF QAAUM growing ~4% qoq to Rs11.6trn, while revenue yields improved to 57.5bps, driving ~7% sequential revenue growth. EBITDA margin improved 20bps sequentially to 72.6% and was higher than our estimate, led by better-than-expected revenue growth. PAT at Rs8.89bn declined ~8% sequentially owing to lower other income given negative MTM movements but was ~4% higher than our estimate. The management mentioned that while the company saw some redemption pressure given market volatility, gross flows remained largely steady. MF revenue yields improved during the quarter, led by multiple factors, while alternate yields improved qoq, led by a change in the mix of alternate AUM. The management mentioned that it sees opportunities in the small-cap space and will gradually open up the mid-cap segment at an appropriate time. Baking in the 2Q developments, we tweak our estimates marginally, resulting in largely unchanged PAT over FY27-29E.
We maintain BUY and Sep-27E TP of Rs3,800, implying FY28E PER of ~43x.
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