Prabhudas Lilladher sees growth in AMC stocks; check its 2 top picks
Live MintThe financial investment products like mutual funds and insurance are very less penetrated in the Indian society, In fact Indian mutual fund industry’s assets under management as a share of GDP have risen from 4.3% in FY02 to 16% in CY20. According to CRISIL, MF total/equity QAAUM is expected to see a CAGR of 13-15% over FY22-26E driven by growing investor base, higher disposable income levels resulting in better household and financial savings, increase in geographical penetration, ease of investing and digitalisation. In a recent report, Prabhudas Lilladher said it has initiated coverage with a buy rating on HDFC Asset Management Company and UTI Asset Management Company. Valuation is at 22.5x FY25E core EPS; we assign a multiple of 27x to arrive at TP of Rs2100,” said Prabhudas Lilladher report. Risks to estimated growth If the market regulator, SEBI cuts the total expense ratio further, asset management companies' earnings could take a hit.
History of this topic
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