Antique Initiates coverage on AMC
HDFC AMC ~ Buy, Target Rs 6000
Nippon Life AMC ~ Buy, Target Rs 950
UTI AMC ~ Buy, Target Rs 1500
Asset Management - SIP drives the structural shift in savings
We believe the Indian mutual fund industry is poised for +15% CAGR in total AUM and +20% CAGR in active equities AUM led by
(a) Consensus expectation of low double-digit nominal GDP growth/ corporate earnings growth;
(b) Resilient and ever increasing SIP flows despite equity market volatility;
(c) Rapid acceleration by digital-first/ fintech distributors; and
(d) Sustained growth momentum in passive AUM
Believe asset management companies (AMC) are ripe for re-rating
Earnings of AMC companies are likely to see strong QoQ recovery
NAM and HDFCAMC are our preferred picks owing to their stable to rising flow market share, consistent fund performance, and well-diversified equity portfolio.
HDFC AMC ~ Buy, Target Rs 6000
Nippon Life AMC ~ Buy, Target Rs 950
UTI AMC ~ Buy, Target Rs 1500
Asset Management - SIP drives the structural shift in savings
We believe the Indian mutual fund industry is poised for +15% CAGR in total AUM and +20% CAGR in active equities AUM led by
(a) Consensus expectation of low double-digit nominal GDP growth/ corporate earnings growth;
(b) Resilient and ever increasing SIP flows despite equity market volatility;
(c) Rapid acceleration by digital-first/ fintech distributors; and
(d) Sustained growth momentum in passive AUM
Believe asset management companies (AMC) are ripe for re-rating
Earnings of AMC companies are likely to see strong QoQ recovery
NAM and HDFCAMC are our preferred picks owing to their stable to rising flow market share, consistent fund performance, and well-diversified equity portfolio.
