“AMCs underperformed over the last one year but will be leveraged to higher market levels,” Jefferies said. “TER (total expense ratio) hit from revised norms should be manageable and concerns around ETFs seem overdone.”
Nippon Life India Asset Management Company Ltd. is the sixth-largest AMC in India with aggregate / equity market share of 7.2% / 7.1% basis points respectively as at nine months FY21.With a strong promoter (Nippon Life Insurance), well established brand, large distribution network and healthy AUM market share, Nippon Life can clock approximately 10% Ebitda (excluding-other income) compound annual growth rate over FY20-23E along with health ~22% return on equity.
Financials stocks were trading in green, with the S&P BSE Finance index increasing 5.97 points or 0.08% at 7053.13 at 09:48 IST. Among the components of the S&P BSE Finance index, Shriram Transport Finance Company Ltd (up 5.95%), Capri Global Capital Ltd (up 4.47%),Cholamandalam Investment & Finance Company Ltd (up 2.55%),Shriram City Union Finance Ltd (up 2.35%),Housing Development Finance Corporation Ltd (up 1.72%), were the top gainers. Among the other gainers were HDFC Bank Ltd (up 1.68%), Mahindra & Mahindra Financial Services Ltd (up 1.64%), Paisalo Digital Ltd (up 1.49%), Spandana Sphoorty Financial Ltd (up 1.33%), and Pilani Investment & Industries Corporation Ltd (up 1.32%). On the other hand, RBL Bank Ltd (down 5.77%), Nippon Life India Asset Management Ltd (down 5.48%), and Dewan Housing Finance Corporation Ltd (down 4.94%) turned lower.