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Mint
11-06-2025
- Business
- Mint
Asset management stocks rebound as AMFI data shows record AUM; Nomura bullish on HDFC AMC, NAM
Shares of asset management companies (AMCs) staged a modest recovery on June 11, 2025, after facing some profit booking in the previous session. The rebound came even as equity mutual fund inflows fell to a 12-month low in May. The data released by the Association of Mutual Funds in India (AMFI) showed a mixed picture—while equity inflows slipped sharply, overall assets under management (AUM) hit an all-time high. The sector also received a boost from Nomura's reaffirmed bullish stance on leading players HDFC AMC and Nippon Life India Asset Management (NAM India), citing strong growth in AUM and profitability. HDFC AMC rose nearly a percent after dropping 2 percent in the prior session. Similarly, UTI AMC gained 0.8 percent, recovering from a 1.4 percent decline on June 10. However, Aditya Birla Sun Life AMC (ABSL AMC) remained under slight pressure, trading flat to marginally lower. Despite short-term volatility, AMC stocks have shown strong momentum in recent weeks—UTI AMC and ABSL AMC have surged up to 20 percent in the last one month, while HDFC AMC has gained 15 percent over the same period. The initial decline in AMC stocks came after AMFI reported a steep 22 percent drop in equity mutual fund inflows for May, totaling ₹ 19,013 crore, the lowest in a year. However, analysts view this drop as a moment of consolidation rather than cause for concern. Anoop Vijaykumar, Head of Equity at Capitalmind MF, said, 'Even with a 22 percent month-on-month dip, ₹ 19,000-plus crore of fresh equity money marks the 51st straight month of positive flows—a remarkable show of investor discipline since March 2021.' One of the biggest positives from the AMFI data was the continued strength in Systematic Investment Plans (SIPs). Monthly SIP contributions rose marginally to hit a new high of ₹ 26,688 crore, marking a 28 percent year-on-year increase. The rising SIP numbers suggest that retail investors continue to favour disciplined, long-term investing strategies. Moreover, the mutual fund industry's total AUM climbed to a record ₹ 72.20 lakh crore in May, up from ₹ 69.99 lakh crore in April. This milestone is seen as an indicator of the deepening of retail participation in capital markets and the ongoing shift of household savings toward financial assets. Overall, the industry registered net inflows of ₹ 29,108 crore during the month. Adding to the positive sentiment, Japanese brokerage Nomura reiterated its bullish outlook on HDFC AMC and NAM India in a report released on June 10. The brokerage maintained 'Buy' ratings on both stocks, driven by expectations of continued growth in AUM and operating profits. HDFC AMC and NAM have rallied 13 percent and 16 percent respectively in the past month, outperforming the broader market even as overall equity inflows slowed. Nomura analysts Ankit Bihani and Parth Desai highlighted the resilience of SIP flows and improving operating leverage as key tailwinds for these companies. The brokerage has set a price target of ₹ 4,272 for HDFC AMC, supported by its dominance in the high-margin equity AUM segment. For NAM India, the target price stands at ₹ 624, driven by cost efficiency and scalable operations. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
11-06-2025
- Business
- Business Standard
Nomura bets on HDFC AMC, NAM amid strong AUM, operating profit growth hopes
Nomura on AMCs: Japan-based brokerage firm Nomura has reiterated its bullish stance on HDFC Asset Management Company (HDFC AMC) and Nippon Life India Asset Management (NAM India), citing robust growth in assets under management (AUM) and healthy operating profit. 'We prefer HDFC AMC (HDFC AMC IN, Buy) and NAM (NAM IN, Buy), due to their strong AUM and operating profit growth outlook,' said Ankit Bihani and Parth Desai, research analysts at Nomura, in a note dated June 10. Nomura has retained its target prices for both stocks—₹4,272 for HDFC AMC and ₹624 for NAM India. Notably, Over the past month, shares of HDFC AMC and NAM have rallied 13 per cent and 16 per cent, respectively, BSE data showed. The brokerage highlighted steady systematic investment plan (SIP) flows and a healthy rise in SIP accounts despite a broader moderation in mutual fund inflows during May 2025. Catch Stock Market Updates Today LIVE 'Monthly equity mutual fund (MF) inflows (excluding arbitrage) moderated to ₹24,200 crore, down 10 per cent month-on-month (M-o-M) in May,' Nomura analysts said. However, the brokerage pointed out that the recent surge in new fund offerings (NFOs) helped partially offset this moderation, with NFO inflows jumping to a four-month high of ₹3,590 crore, compared to just ₹170 crore in April. Sectoral and thematic fund NFOs alone contributed ₹1,790 crore, indicating strong retail interest in niche investment ideas. Despite the decline in headline equity inflows, SIP inflows remained steady at ₹26,700 crore, flat on a monthly basis but up 28 per cent year-on-year (Y-o-Y). SIP AUM grew to ₹14.6 trillion (up 27 per cent Y-o-Y, up 5 per cent M-o-M), reflecting continued investor confidence in long-term wealth creation through disciplined investing. The number of contributing SIP accounts also rose to 8.56 crore, up 2 per cent M-o-M. The SIP stoppage ratio, a key metric indicating account discontinuation, began to normalise in May and stood at around 72 per cent, after a spike in April linked to regulatory compliance checks. However, inflows across major equity fund categories declined. Large-cap funds saw the sharpest fall at 53 per cent M-o-M, with net inflows of ₹1,300 crore. Small-cap and mid-cap funds also registered a slowdown, drawing ₹3,200 crore and ₹2,800 crore, respectively, while flexi-cap fund inflows dropped to ₹6,800 crore. Sectoral and thematic funds, by contrast, remained steady with ₹2,100 crore in inflows, and large+mid-cap funds saw a marginal rise to ₹2,700 crore. On the debt side, mutual funds witnessed a sharp fall in inflows to ₹20,700 crore in May from ₹43,800 crore in April. Liquid funds, which had seen a massive surge in April, reversed course with outflows of ₹37,100 crore. The AUM for debt and liquid funds stood at ₹8.9 trillion and ₹8.8 trillion, respectively. Passive schemes were also hit, with inflows dropping sharply to ₹5,500 crore from ₹20,200 crore the previous month. Total mutual fund industry AUM reached approximately ₹72 trillion in May, up 23 per cent Y-o-Y and 3 per cent M-o-M. Of this, equity AUM constituted around ₹42 trillion, contributing 58 per cent to total industry AUM — a 118 basis points (bps) increase from a year ago. That said, despite near-term fluctuations in flows, Nomura analysts' conviction in these asset managers reflects confidence in their ability to sustain growth, ride structural industry tailwinds, and deliver consistent performance for investors.
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Business Standard
06-06-2025
- Business
- Business Standard
HDFC Bank, HDFC AMC hit record highs, SBI Cards rallies 5%; here's why?
Thus far in the calendar year 2025, SBI Cards (up 45%), HDFC AMC (up 22%), HDFC Bank (up 12%) have outperformed the BSE Sensex, which was up 4.6% during the same period. Listen to This Article Share price movement of HDFC Bank, HDFC AMC, SBI Card today Shares of private sector giant HDFC Bank (₹1,996.30), HDFC Asset Management Company (AMC) (₹5,140) hit their respective all-time highs, and rallied up to 5 per cent on the BSE in Friday's intra-day trade amid heavy volumes. HDFC Bank was up 2.3 per cent at ₹1,996.30, surpassing its previous high of ₹1,977.95 touched on April 23, 2025. Meanwhile, shares of SBI Cards and Payment Services (SBI Card) hit a multi-year high of ₹986.95, also surged 5 per cent on the BSE in intra-day trade. The stock price of the non-banking
Economic Times
05-06-2025
- Business
- Economic Times
Jubilant' Bhartia's Rs 5,650 cr NCDs for coke bottler stake oversubscribed 1.9 X as AMCs double down
HDFC AMC and other leading asset managers heavily invested in Jubilant Bhartia Group's NCDs, which aimed to raise ₹5,650 crore for acquiring a stake in Hindustan Coca-Cola Holdings. The bond offerings were oversubscribed, indicating strong investor confidence. The issues, priced at 8.66% and 8.79% respectively, attracted major players like Nippon India and Franklin Templeton. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Mumbai: Leading asset management firms, led by HDFC AMC , snapped up the two sets of non-convertible debentures (NCDs) issued by the Jubilant Bhartia Group to raise Rs 5,650 crore to part-fund its acquisition of a 40% stake in Hindustan Coca-Cola Holdings , the parent of Coca-Cola's largest bottling business in bond offerings, made via two group entities, saw bids totalling Rs 10,610.84 crore, nearly 1.9 times the intended amount, according to people familiar with the matter, underscoring the appetite of mutual funds to buy into such Beverages Ltd, which targeted Rs 2,650 crore, received bids worth Rs 5,840 crore against a non-anchor book allocation of Rs 1,855 crore. The offer also included a Rs 795 crore tranche allocated for anchor investors. Jubilant Bevco, which launched a Rs 3,000 crore issue on Tuesday, attracted Rs 4,770.84 crore in bids. This included Rs 900 crore from anchor subscriptions and Rs 2,100 crore from the wider Mutual Fund took nearly 37% of the two fully convertible, rupee-denominated, listed, rated and redeemable NCDs. Other key investors included Nippon India Mutual Fund, Franklin Templeton, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Nomura Fixed Income Securities, ICICI Prudential MF and Bajaj Finance. Jubilant Beverages'the people Stanley was the lead arranger of the issue. Standard Chartered was the co-arranger for the Jubilant Beverage bonds are structured as zero-coupon instruments with tenures of two years, 11 months and 27 days. HDFC AMC remained unanswered as of press time Wednesday.'We are seeing mutual funds, especially hybrid and corporate bond funds, emerge as anchor investors in short-term papers, particularly in the three-year segment,' said Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap LLP. 'The spread over G-Secs remains attractive at around 80–85 basis points, which explains the strong appetite, compared to 10-year G-sec where the spread is approximately 40-45 basis points.' A surge in system liquidity since April has also boosted inflows into mutual funds, enabling them to deploy significant amounts in primary corporate bond issuances , where yields remain attractive, he said.'Though this is a fixed-rate bond, some investors paid a higher amount for the minimum allocation which meant a lower effective yield for them," said another person aware on condition of from the bonds will go toward financing Jubilant Bhartia Group's Rs 12,650 crore acquisition of Hindustan Coca-Cola Holdings (HCCB) alongside funds managed by Goldman Sachs Asset Management. The deal, first announced in December 2024, received clearance from the Competition Commission of India last the transaction structure, Jubilant Beverages will acquire equity shares in HCCB from Coca-Cola entities. Meanwhile, Jubilant Bevco and the investor consortium will subscribe to compulsorily convertible preference shares issued by the company. Coke will reduce its shareholding further once the company lists, scheduled 1.0-1.5 years transaction marked the biggest acquisition by the promoters of the pizza-to-pharma conglomerate till date. The Bhartia family, which has exclusive franchise rights for Domino's Pizza, India's largest foods services brand, did not want to over-leverage. They are funding about Rs 5,000 crore total acquisition financing includes Rs 5,650 crore in debt and quasi-equity from private capital providers, with the remainder coming via equity infusion from the Jubilant Bhartia holding company. The transaction pegs the enterprise value of Hindustan Coca-Cola Beverages at Rs 31,250 crore.
Time of India
28-05-2025
- Automotive
- Time of India
Auto entering coexistence era of ICE and EVs, HDFC AMC's Priya Ranjan explains
Stating that ICE vehicles will remain dominant in several key segments, especially in commercial and entry-level passenger vehicles, Priya Ranjan – Fund Manager And Senior Equity Analyst, HDFC AMC , said we are in a 'coexistence era' where both technologies will evolve in parallel. Edited excerpts from a chat: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mountain Gear for Extreme Conditions Trek Kit India Learn More Undo Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Let's start with the pulse of the auto sector. Where are we in the auto industry cycle, especially when it comes to 2-wheelers and 4-wheelers? 2W and passenger vehicles are more structural segments of the automotive universe and they generally have an upward trajectory over the long term but in the short term we sometimes see demand volatility due to changes in consumer confidence, interest rates and disposable income growth. Both the segments are driven by lower vehicle penetration in the medium to long-term. While we see some demand softness in passenger vehicle growth currently, 2W performance continues to be on an upward trajectory driven by rural growth. On the other hand, commercial vehicle segment is also witnessing a weak demand environment due to deceleration in economic activities as well as weakness in globe trade amidst the global tariff war. However, demand stimulus from government tax cuts, interest rate reduction and upcoming pay commission revision for government and PSU employees could propel urban and Passenger Vehicle demand. Thus, both 2W and PV could witness reasonable growth from a 1-2yrs perspective although near term PV demand may be lacklustre. You manage the HDFC Transportation and Logistics Fund. How are you positioning the portfolio today? Is it more towards four-wheelers, two-wheelers, or the unsung heroes in the ancillaries? We build our portfolio on a bottom-up basis without a specific preference for a particular segment. The idea is to diversify the fund across various segments and position the fund optimally to make the most of the divergent business cycles of 2Ws, 4Ws, CVs, Logistics etc. We usually position our portfolio with mix of auto and transport subsegments, including ancillary and logistics companies where we see healthy earnings growth potential and a business moat. Live Events EVs have dominated the headlines, but the numbers still show ICE vehicles holding strong. Are we witnessing a long transition phase, or is the EV narrative running ahead of itself? While EVs dominate news headlines, the ground reality is more nuanced. ICE vehicles continue to lead volumes across most categories, especially in rural and price-sensitive markets. This resilience is rooted in a mature support ecosystem, lower upfront costs, and better range reliability—factors that EVs are still catching up on. EV transition is in its nascent stage. Infrastructure rollout, battery technology, and cost parity will take time to mature. Meanwhile, ICE vehicles will remain dominant in several key segments, especially in commercial and entry-level passenger vehicles. We believe in businesses that are not only beneficiaries of today's ICE demand but are also laying the groundwork for the EV future—be it through R&D, partnerships, or product diversification. We view this not as a binary shift, but a 'coexistence era' where both technologies will evolve in parallel. From a valuation standpoint, how do you weigh high-growth but richly priced EV bets against legacy players that may be slower movers but trade at more reasonable multiples? From a valuation standpoint, we focus on balancing long-term growth potential with near-term earnings visibility and capital efficiency. EV-focused companies often command premium valuations, largely driven by their future promise. While some are backed by strong innovation and a first-mover advantage, many are yet to demonstrate consistent profitability or scale. We remain cautious about paying for narratives that may take years to materialize, especially when execution risks are high. How do you think India-UK FTA will impact some of our listed players? We anticipate the India-UK FTA to have a limited direct impact on most listed auto players, primarily due to the differing consumer profiles and market dynamics of the two countries. The UK automotive market caters largely to high-end, premium vehicles, whereas India is more focused on value-driven, mass-market segments. This divergence in consumer preferences means there is relatively little overlap in product offerings. Additionally, the UK has a relatively small automotive manufacturing base, especially when compared to the EU, which limits the potential for large-scale bilateral trade in vehicles or components. That said, niche opportunities may emerge for select Indian auto component exporters and suppliers to tap into the UK's aftermarket or specialized segments. Overall, while the FTA may ease some trade processes and tariffs, we do not expect a material shift in demand or export volumes for most mainstream Indian auto companies in the near term. How do interest rate moves impact the auto story? With more rate cuts expected in 2025, are we looking at a financing-driven demand boom? Financing is always an important factor for automotive accessibility across the globe and India is no exception. When interest rates decline, borrowing costs drop, making EMIs more affordable and widens access to credit—especially for price-sensitive consumers in entry-level and mid-segment vehicles. With potential rate cuts expected in 2025, we anticipate a strong financing-driven demand boost. Lower rates could unlock demand among first-time buyers and rural/ semi-urban consumers who have traditionally faced credit constraints. Commercial vehicle demand should also benefit as fleet operators take advantage of cheaper financing to expand or upgrade their fleets. There's also a consumption angle here. As incomes rise and rural demand improves, are you seeing any early signals of pickup in entry-level vehicles? Yes, we are witnessing early but encouraging signals of a pickup in entry-level vehicle demand, particularly in rural and semi-urban markets. This revival is being driven by a confluence of factors: improving rural incomes due to better crop realizations and MSP hikes, easing inflation, and targeted government schemes boosting rural employment and infrastructure. Normal/Above normal monsoon forecasts for 2025 also bode well for rural incomes and consequently, rural auto demand.
