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Canara Robeco Asset Management Company

Industry: Asset Management

Latest CMP 256

Today's Change ▲ 0.04%

52-Week High / Low 346 | 215

Price Date: 14-Aug-2026

Recommendation Buy

Target Price 361

Expected Upside 18.7%

Forecast Horizon 2 Years

Historical CAGR Not Available

1,000 Invested —

Today's Value —

Investment Period < 5 Years

Stock Snapshot

Post Results Return

+3.8%

Mild Positive Re-rating

1-Year Target Price

319

2-Year Target Price

361

52-Week High / Low

346 / 215

20-Day Return

+0.2%

Market Cap (Cr.)

5,109

Current PE

25.6

P/BV Ratio

8.5

Dividend Yield

0.5%

Industry PE

37.8

Price Performance

Vista Outlook

View Technicals Analysis →

Basis of our Recommendation

Canara Robeco Asset Management Company (CRAMC) is navigating a complex landscape characterized by both opportunities and challenges. Management has highlighted a strategic focus on maintaining yield stability and controlling costs, particularly through technology investments, which are essential for enhancing operational efficiency. The recent restructuring of the Total Expense Ratio has positively impacted revenue yields, yet the company faces headwinds from a 5% QoQ decline in SIP flows and competitive pressures that could affect AUM growth. Vista's financial outlook anticipates stable revenue growth and improving margins, supported by a conservative balance sheet and a fair valuation. The asset management industry is in a growth phase, with a projected CAGR of over 10%, which aligns with CRAMC's strategic initiatives to capture market share through new product launches and enhanced digital capabilities. However, the high equity exposure poses risks during market downturns, and regulatory changes could impact revenue yields. Over the next 12-24 months, key opportunities include expanding the retail franchise and leveraging technology, while watchpoints include SIP inflow stabilization and competitive dynamics in the asset management sector

👍 Why We Like This Stock

Management's focus on technology investments and cost control is expected to enhance operational efficiency
The restructuring of the Total Expense Ratio has improved revenue yields, supporting margin expansion
The asset management industry is projected to grow at a CAGR of over 10%, providing a favorable backdrop for CRAMC's strategic initiatives

⚠ Things To Watch Out For

A 5% QoQ decline in SIP flows indicates potential challenges in AUM growth
High equity exposure may pose risks during market downturns, impacting revenue stability
Competitive pressures in the asset management sector could affect margins and growth prospects

Key Parameters

Balance Sheet Strength

Conservatively Financed

Market Share

Stable

Industry Outlook

Weakening

Analyst View

Hold

Dividend History

Consistent

FII Holdings

Stable

Financial Snapshot

	Actuals			Forecast
	FY24	FY25	FY26	FY27	FY28
Revenue (Cr.)	318	404	454	500	596
Profit Before Tax (Cr.)	195	258	275	314	375
PBT Margin	61.3%	63.9%	6057.3%	62.8%	62.9%
Net Profit (Cr.)	151	194	203	231	276
Earnings Per Share	7.6	9.7	10.2	11.6	13.8

Analyst Recommendations

Broker	Recommendation	Target Price	Date
Moneycontrol	► Equalweight	nan	05-May-2026
Prabhudas Liladhar	► Hold	285	23-Jul-2026

Consensus Recommendation ► Hold

Consensus Target 285

Coverage 2 Analysts

Analysts' Viewpoint

Canara Robeco Asset Management's Q1FY27 performance was bolstered by enhanced revenue yields due to strategic adjustments in the Total Expense Ratio. The company's equity-focused strategy positions it well for long-term growth, although it faces industry-wide challenges such as a 5% decline in SIP flows and slower AUM growth compared to peers. Management's focus on maintaining yield stability, controlling costs, and expanding into passive and specialized investment products underpins a cautiously optimistic outlook.

Company Overview

Show Company Profile

Canara Robeco operates as a subsidiary of Canara Bank