- Shares of Aditya Birla Sun Life AMC rose after Citi raised its target price to Rs 1,195
- Citi retained a buy rating citing improving fund performance and recovery in business momentum
- Better equity scheme performance could boost investor flows and average assets under management
Shares of Aditya Birla Sun Life AMC were in focus after Citi raised its target price to Rs 1,195 from Rs 1,130 and retained its buy rating, pointing to improving fund performance and a recovery in business momentum. The revised target suggests an upside of about 14% from the reference market price of Rs 1,047.
The brokerage said better performance across key equity schemes could help improve investor flows and support growth in average assets under management over time. That view comes as management flagged a gradual improvement in net flows in recent quarters.
The note marks a positive turn for the fund house after several years of weak performance trends between 2019 and 2024. Citi said some equity schemes have shown "clear green shoots" in recent quarters, with returns stabilising and improving in some cases.
Aditya Birla Sun Life Q4 Highlights (Cons, QoQ)
- Net Profit Down 30.6% At Rs 187 Crore Vs Rs 270 Crore
- Total Income Down 24.4% At Rs 425 Crore Vs Rs 562 Crore
Performance Recovery
Citi said sustained improvement in scheme performance should help reverse flow trends over time, aided by favourable mark-to-market gains. It added that stronger visibility on performance could lift incremental business momentum.
The brokerage also said the company's systematic investment plan market share improved on a quarter-on-quarter basis. It noted that Aditya Birla Sun Life AMC has previously used its sales network and distributor relationships to gain market share during periods of stronger scheme performance.
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