AMC rally may gain further steam after robust Q2 showing

Brokerages raise targets as AMCs deliver earnings surprise

- ABHISHEK KUMAR

After a robust performance in the second quarter (Q2), analysts believe that shares of asset management companies (AMCs) are poised for further gains, despite having surged significantly in the past year.

Most brokerages have raised the target price for all the four AMC shares.

HDFC AMC, the largest among the listed AMCs, reported a 32 per cent year-on-year (Y-o-Y) jump in net profit at ₹577 crore. The profit went up by 47 per cent for Nippon India AMC. Aditya Birla Sun Life (ABSL) AMC and UTI AMC reported a 36 per cent and 31 per cent jump in profits, respectively.

The sharp rise in profits came on the back of strong growth in high-yielding equity assets amid market rally. Majority of the listed AMCs have also managed to either grow or keep their market share steady during the quarter.

HDFC AMC has kept the market share steady at around 11.5 per cent with focus on equity AUM driven by sustained performance, robust SIP flows (market share at around 15 per cent) and accretion in unique customer base, according to ICICI Direct.