Choice Institutional Equities said, “At the upper price band, the issue is valued at a P/QAAUM of 9.3% and a P/E of 38.1x (based on FY26 EPS of Rs. 15.1), indicating a fair valuation relative to peers. However, its scale provides significant operating leverage, reflected in the industry’s lowest cost-to-income ratio and lowest operating cost as a percentage of Quarterly Average Assets Under Management (QAAUM).”
“The company also enjoys deep penetration in B-30 cities, supported by its extensive distribution network and leadership in Tier II and Tier III markets. Additionally, its strategic partnership with Amundi enhances its investment capabilities and international reach.”
“Favourable structural trends such as increasing financialisation of household savings, rising Systematic Investment Plan (SIP) adoption, and growing mutual fund penetration are expected to support long-term growth. Considering its market leadership, strong profitability, operational efficiency, and robust long-term growth prospects, we assign a ‘SUBSCRIBE’ rating to the issue.”