Shares of SBI Funds Management Ltd. surged by 5% in Monday's trading session, reaching a high of Rs 522.50. This rally followed Antique Stock Broking's initiation of coverage on the asset management company (AMC) with a 'Buy' rating.
Antique has set a target price of Rs 620 per share for SBI Funds Management, suggesting a potential upside of 24% from its current levels. The brokerage pointed to the company's extensive scale, robust distribution network, and the potential for improved active equity fund flows as primary drivers for future growth.
India's Largest Mutual Fund Manager
SBI Funds Management holds the position of India's largest mutual fund manager. As of June 2026, the company managed quarterly average assets under management (QAAUM) totaling Rs 12.6 lakh crore, securing a 15.1% market share in the industry. Beyond active funds, it maintains a significant presence in passive funds, which constitute approximately 32% of its total AUM and command a 27.4% market share in that segment.
Key Growth Catalysts Identified
Antique's analysis highlights several factors underpinning its optimistic outlook. The extensive distribution network of the State Bank of India (SBI) provides SBI Funds Management with a strong foothold in smaller cities, particularly those classified as B-30 locations. Approximately 65% of the company's systematic investment plan (SIP) flows originate from these regions, indicating substantial scope for deeper mutual fund penetration.
The brokerage also identified significant opportunities in alternative investment funds (AIFs) and specialised investment funds (SIFs). SBI Funds Management's AIF QAAUM notably doubled from Rs 3,400 crore in March 2024 to Rs 6,800 crore by June 2026. Furthermore, its Magnum SIF platform, launched in October 2025, has rapidly captured around 14.6% of the emerging SIF category, with AUM reaching Rs 5,600 crore by the second quarter of FY27.
Financial Projections and Risks
Looking ahead, Antique projects strong compound annual growth rates (CAGR) for SBI Funds Management between FY26 and FY29. It anticipates equity mutual fund AUM to grow at 16%, total mutual fund AUM at 12%, revenue at 14%, and profit after tax at 13%.
The brokerage believes that a sustained recovery in active equity fund flows will serve as a crucial catalyst for a potential re-rating of SBI Funds Management shares. However, Antique also flagged key risks, including equity market volatility and the sustained underperformance of the company's schemes. As of July 2026, less than 46% of SBI Funds Management's equity AUM ranked in the top two performance quartiles over three years, a figure lower than some peers like HDFC Asset Management Company and ICICI Prudential Asset Management Company.
Antique valued the stock at 30 times its estimated price-to-earnings ratio for the first half of FY29 to arrive at its Rs 620 target price, a valuation in line with HDFC AMC and at a 15% discount to ICICI AMC and Nippon Life India Asset Management Ltd.