Buy Canara Robeco Asset Management Company; target of Rs 350: Prabhudas Capital

Prabhudas Capital is bullish on Canara Robeco Asset Management Company has recommended buy rating on the stock with a target price of Rs 350 in its research report dated October 31, 2025.

Broker Research

November 05, 2025 / 15:06 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Capital's research report on Canara Robeco Asset Management Company

CRAMC saw a decent quarter as core PAT (adjusted of MTM gains/losses) increased by 7.7% QoQ & 25% YoY. Blended yields were steady QoQ despite (1) decrease in equity share in AUM mix by 120bps QoQ to 90.8% (2) telescopic pricing impact due to strong QAAUM growth of 7.8% QoQ (3) increase in liquid share QoQ to 6.3% from 5.3% in Q1FY26, suggesting some pass through of telescopic pricing to distributors. Performance in 1-yr bucket has been decent that was maintained in Q2FY26.

Outlook

Net equity flow market share has remained steady at 1.3% in H1FY26 while SIP market share was 2.6% (similar to stock equity market share). Our estimates remain unchanged, and we see healthy core earning CAGR of 17% over FY25-28E. While stock has run-up from the issue price of Rs 266 we continue to remain positive on CRAMC; stock is trading at 23.8x on Sep’27 core ABV. We increase multiple on FY27E core EPS to 26x from 24x and raise TP to Rs 350 from Rs 320. Retain ‘BUY’.

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