SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : ICICI Prudential Asset Management Company Ltd

BSE: 544658 NSE: ICICIAMC ISIN: INE346A01027
  |   Sector:  BFSI   |   Industry:  Finance - Asset Management

Snapshot

Q.1 Which industry/sub-sector does ICICI Prudential Asset Management Company Ltd belong to?
ICICI Prudential Asset Management Company Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.
Q.2 Is ICICI Prudential Asset Management Company Ltd a good quality company?
ICICI Prudential Asset Management Company Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is ICICI Prudential Asset Management Company Ltd undervalued or overvalued?
ICICI Prudential Asset Management Company Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 47.97 48.21
Price to Book 37.93 31.71
Price to Sales 27.44 26.41
EV to EBITDA 34.89 35.10
Q.4 Is ICICI Prudential Asset Management Company Ltd a good buy now?
ICICI Prudential Asset Management Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.

  • How efficiently has it grown and managed operations?

    By checking its Total Asset growth and Cost-to-Income ratio.

  • How strong is its Capital position and Asset Quality?

    By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd revenue growth is 32.4% for FY-2025, which is above its 5-year CAGR of 19.86%, indicating faster growth.

Q.2 Gross Profit margin of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 72.7% for FY-2025, which is in line with its 5-year median of 73.5%, indicating stable margins.

Q.3 Operating Profit Margin of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 73.02% for FY-2025, which is in line with its 5-year median of 73.89% indicating stable margins.

Q.4 Net Profit Margin of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Net Profit Margin is 53.25% for FY-2025, is in line with its 5-year median of 54.54%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 72.7 73.5
Operating Profit Margin (%) 73.02 73.89
Net Profit Margin (%) 53.25 54.54

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Return on Asset is 51.7%, which is above its 5-year historical median of 49.1%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Return on capital employed is 111% for FY-2025, which is above its 5-year historical median of 104.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Return on equity is 84.6% for FY-2025, which is in line with its 5-year historical median of 81%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Cash conversion cycle is -26 days, above its 5-year historical median of -29 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.97 0.89
ROE (%) 84.6 81
ROCE (%) 111 104.5
Cash Conversion Cycle -26 days -29 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of ICICI Prudential Asset Management Company Ltd?
ICICI Prudential Asset Management Company Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ICICI Prudential Asset Management Company Ltd?

Q.1 Promoter shareholding and pledge status of ICICI Prudential Asset Management Company Ltd?
Promoters hold 87.59% of the ICICI Prudential Asset Management Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ICICI Prudential Asset Management Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ICICI Prudential Asset Management Company Ltd vs industry peers?
ICICI Prudential Asset Management Company Ltd revenue CAGR is 19.86%, compared to the industry median CAGR of 15.83%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 32.4 15.8
Gross Profit Growth (%) 30.9 17.2
Operating Profit Growth (%) 30.9 16
Net Profit Growth (%) 29.3 17.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.97 0.64
ROE (%) 84.6 55.55
ROCE (%) 111 71.1
Cash Conversion Cycle (days) -26.17 -19

Valuation & price assessment

Q.1 Stock return of ICICI Prudential Asset Management Company Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of ICICI Prudential Asset Management Company Ltd vs historical?
The current P/E ratio of 47.97 is in line with than its historical median of 48.21, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 47.97 48.21 33.16
Price to Book 37.93 31.71 5.67
Price to Sales 27.44 26.41 22.04
EV to EBITDA 34.89 35.10 22.96

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×