June 16, 2026

Unlisted Network’s recent analysis of PPFAS (Parag Parikh Financial Advisory Services) Unlisted Shares was featured on Reddit’s IPO India community, where investors discussed the company’s growth, valuation, risks, and long-term investment potential.

The discussion focused on whether PPFAS’s current unlisted market valuation is justified given its strong historical performance and position within India’s growing asset management industry

PPFAS Growth Story:
PPFAS has emerged as one of the fastest-growing asset management businesses in India over the past decade.

Some of the key metrics highlighted in the discussion include:

  • Assets Under Management (AUM) exceeding ₹1.6 lakh crore
  • Revenue CAGR of approximately 67% over the last five years
  • Profit CAGR of approximately 93% over the last five years
  • Return on Equity (ROE) of around 47%
  • EBITDA Margin of nearly 79%
  • PAT Margin of approximately 57%
  • Investor base expanding from fewer than 2,000 investors in FY14 to nearly 49 lakh investors in FY25

The discussion also noted the broader opportunity within India’s mutual fund industry. Industry AUM has increased from roughly ₹12 lakh crore in FY15 to more than ₹74 lakh crore, indicating significant long-term growth potential for asset management companies

The Valuation Debate:
At the time of the discussion, PPFAS was trading in the unlisted market at approximately ₹17,950 per share.

Based on available financial data, investors noted valuation multiples of approximately:

  • P/E Ratio: 55x
  • P/B Ratio: 21x
  • EV/EBITDA Ratio: 40x

These valuation levels are higher than many listed asset management companies, including:

  • HDFC Asset Management Company
  • ICICI Prudential Asset Management Company
  • Nippon Life India Asset Management

However, investors participating in the discussion argued that PPFAS has also delivered stronger growth rates than many listed peers, making direct valuation comparisons more nuanced.

Key Risk Highlighted
One of the most frequently discussed risks was AUM concentration.

According to the analysis, approximately 88% of total AUM is linked to a single scheme, the Parag Parikh Flexi Cap Fund.

Investors noted that while the scheme has been a major contributor to growth, sustained underperformance or weaker inflows could impact overall AUM growth and profitability. As a result, diversification across multiple products remains an important factor to monitor.

Growth Versus Valuation:
A key takeaway from the discussion was the balance between premium valuation and premium growth.

While traditional valuation metrics suggest PPFAS trades at a significant premium, some investors argued that growth-adjusted measures such as the PEG ratio may present a more favorable picture when compared with listed peers.

As India’s mutual fund penetration continues to increase, the debate remains whether PPFAS’s growth trajectory can justify its current valuation in the unlisted market.

Join the Discussion

View the Reddit Discussion:

https://www.reddit.com/r/IPO_India/s/CbCZfEk5og

Read the Full Analysis:

Parag Parikh Unlisted Share Analysis : Should You Buy PPFAS at ₹17,950?