December 7, 2025
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ICICI Prudential AMC is a highly profitable, debt-free, cash-rich AMC with industry-leading ROE of 82%.
Its AUM scale, leadership in active funds, and strong distribution give it a solid long-term outlook.
Pricing at Rs. 2061–2165 implies a P/E of ~33x on FY25 EPS, slightly higher than listed peers, but justified due to leadership and brand value.
Peer Comparison (Valuation & Profitability)
| AMC | Market Cap (Rs. Cr.) | FY25 PAT (Rs. Cr.) | P/E | ROE | Remarks |
|---|---|---|---|---|---|
| HDFC AMC | ~47,000 | ~1,500 | ~32x | ~28% | Premium franchise, strong inflows |
| Nippon AMC | ~17,500 | ~870 | ~20x | ~23% | Strong SIP book, retail-heavy |
| UTI AMC | ~10,000 | ~1,000 | ~10x | ~12% | Undervalued, recovering gradually |
| ICICI Prudential AMC (IPO) | – | 2,651 | ~33x | 82.8% | Best profitability among peers |
Key Observations:
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Highest ROE in the industry:
ICICI Prudential AMC’s ROE of 82.8% is unmatched in AMC space. -
Superior profitability:
PAT of Rs. 2,650+ crore is highest among listed peers. -
Valuation Premium vs. Peers:
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Higher than Nippon AMC & UTI AMC
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Slightly above HDFC AMC
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Justified due to leadership, scale, and consistent performance
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AUM Leadership:
Largest AMC in terms of active AUM + top position in ETFs and index funds. -
Zero Equity Dilution:
Entirely OFS → No impact on financial position. -
Risks:
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Market-linked earnings
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Pressure from passives on AMCs’ profitability
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Regulatory changes (TER revisions)
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Chanakya Final Verdict:
✔ Strong business moat
✔ High ROE & profitability
✔ Leadership in AUM & distribution
Ideal for investors with 2–5 year horizon.
Expected to remain a long-term compounding story like HDFC AMC.
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