Jefferies initiates India's SBI Funds Management with "buy"

Sbi Funds Management

28/08/2026 07:58

** Jefferies initiates SBI Funds Management SBIA.NS with "buy"; PT of 710 rupees
** Shares down 0.5% to 560 rupees
** Brokerage says India's largest AMC has a distribution moat through its exclusive association with State Bank of India
** Expects AUM to grow at 16% CAGR over FY26-FY29, with equity AUM growing at 18% CAGR
** Notes SBI accounts for 35% of SBI FM's equity AUM, compared to 8% for ICICI AMC and 6% for HDFC AMC
** Says SBI FM is well positioned in faster-growing B30 markets or smaller cities and towns
** Expects operating profit to grow at 15% CAGR till FY29, led operating leverage
** Says PAT to grow at 13% CAGR as investment assets fell by 30% Y/Y in FY26 
** Stock down 8.2% since listing on July 21, 2026

 (Reporting by Payel Das in Bengaluru)
 ((Payel.das@thomsonreuters.com))