Centrum Broking has officially initiated coverage on SBI Funds Management, expressing strong optimism regarding the asset manager's future trajectory. Analysts have assigned a Buy rating to the stock, establishing a price target of Rs 700, which suggests a significant upside of 34% from current levels.
The brokerage highlights SBI AMC's formidable distribution network as a primary growth driver. By leveraging an extensive reach, particularly in B-30 (Beyond top 30) locations, the firm is effectively capturing a wider segment of the retail investor base.
Furthermore, experts believe the company’s strategic expansion into non-mutual fund business lines will be instrumental. This diversification is expected to bolster both Assets Under Management (AUM) and overall earnings consistency over the next three fiscal years.
With a solid foundation and clear scalability, Centrum views SBI Funds Management as a prime contender for long-term value creation, positioning it favorably within the competitive Indian financial landscape.
