Latest news with #AMCs
Time of India
3 days ago
- Business
- Time of India
Amnish Aggarwal on where to find value in capital market theme
Amnish Aggarwal , Head-Research, Prabhudas Lilladher , says BSE's potential boost from NSE's listing makes it attractive. Capital market themes like AMCs and wealth companies offer steady returns, though significant re-rating is unlikely. Life insurance shows strong numbers and momentum, contrasting with slower growth in non-life. Within the stock market, what is looking good at these levels? BSE is still not looking overbought. So, where do you find value on the table in the entire capital markets theme? Amnish Aggarwal: BSE numbers have been reasonably good, but there are also expectations of NSE, which is the bigger exchange, getting listed. Once listed, NSE should command a reasonably good premium and PE multiples given the kind of number, scale it has got. But more importantly, going by technical factors, once NSE gets listed, I believe it is going to have Rs 4-5 lakh crore or more market cap and it will be listed only on BSE because NSE shares cannot be listed on its own exchange. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Now, once that bigger stock comes and it is in F&O, in indices and everywhere, the BSE volumes per se will get a boost significantly by the NSE listing . So that is one. Now, as far as value is concerned, till the time we get some listing from the NSE, BSE will continue to attract investors. But looking at the broader capital market themes which will include AMCs, which will include wealth companies, and broking, the markets have been good. The number of investors in the Indian markets has been going up and barring the correction which comes in from time to time, whether it is the wealth space or AMCs, this space can give very secular returns from here on. But if we look at the value of the last couple of years, will any significant re-rating happen in many of these companies including some of the service providers like CAMS? I think many of the stocks are already trading at 30 times, 40 times. So, while a significant re-rating might not happen, many of these stocks still provide a decent opportunity to make secure gains from here on. Will the same apply to CAMS, MCX and other financial intermediaries also? Amnish Aggarwal: Yes, that is what I am saying. A BSE or NSE is a very different case altogether, but when it comes to others which includes AMCs, which, even CAMS and all, they have now reached the stage where there would be more secular returns because the re-rating potential in terms of PE is very limited. Live Events You Might Also Like: Markets likely to trend and hit new highs in H2; 3 themes to deliver multi-year returns: Nitin Raheja Is there merit in revisiting insurance stocks, both life and as well as non-life because stocks like HDFC have come at a 52- week high. Suddenly, Star Healthcare, which is health insurance, is up 40-50% from the lows. LIC had a field day yesterday. Is the entire insurance space looking bombed out and is there value in it now? Amnish Aggarwal: One has to bifurcate them into two parts. If you look at life insurance companies, whether it is HDFC Life or LIC or even Max, all have reported strong numbers. They seem to be looking pretty decent and that is also getting amply reflected in the way the stock prices are behaving. When it comes to the non-life insurers, particularly the ones which are health insurance companies or companies catering to segments like vehicles and other insurances, the scenario is slightly different if you look at the recent numbers of Star Health or ICICI Lombard. That sort of growth is not visible there. In the last 4-6 months, life insurance has started taking the centre stage. In the last two to three years, there was a long consolidation happening in the life insurance industry and the stocks were moving in the same range for quite some time. Now with the growth revival, they have done well. As of now, life insurance companies in particular have been doing far better and the momentum seems to be on their side. As far as non-life is concerned, we might see some action over there, but as of now the numbers and the trajectory does not suggest that. So, how far are we away from this word value for IT? Companies have no debt. Return on equity is decent. Buyback is happening. Cash flows are still there. Rather than buying defence stocks or consumer stocks at 70-80 PE multiple, isn't it better to buy it at PE multiples of 17-18? Consumer companies are growing at 2-3%. PE multiples are 50 times. IT companies are growing at 7% to 8%, PE multiples are in the mid-teens or early 20s. Amnish Aggarwal: You can look at them on a relative basis because definitely consumer companies are growing much slower, their PE multiples are higher, but IT services if you look at say recent past, it is a typical value trap kind of a situation. You just strip out a few years in between when they got some booster and they grew faster, otherwise the secular growth in some of these companies has not been that great. You Might Also Like: ETMarkets PMS Talk: PIPE and value strategies delivered 30–37% CAGR over 5 years - Anand Shah reveals growth drivers One can argue that the PE multiples have corrected more than what they traded in 2022 because after the first wave of COVID everyone thought that work from home is a new normal, their costs have permanently come down, the margins are going to improve. But even Infosys, TCS started work from office and everyone's multiples got re-rated by 30% to 40% which have now been corrected over a period of time. As of now, I see very little scope for any big surprise in terms of numbers because the global turmoil seems to be there both on the tariff side as well as on the growth side. The dividend yields or in the stocks the PE multiples are low. In terms of visibility and overall setup, I want to go for pure growth, then I would not be much keen on many of these IT names. I agree that some of the defence stocks or some of the consumer stocks are definitely expensive, but they are pure contra value stories. Whether they will start growing again and get re-rated is something which I am not very confident about.
Economic Times
3 days ago
- Business
- Economic Times
Amnish Aggarwal on where to find value in capital market theme
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , Head-Research,, says BSE's potential boost from NSE's listing makes it attractive. Capital market themes like AMCs and wealth companies offer steady returns, though significant re-rating is unlikely. Life insurance shows strong numbers and momentum, contrasting with slower growth in numbers have been reasonably good, but there are also expectations of NSE, which is the bigger exchange, getting listed. Once listed, NSE should command a reasonably good premium and PE multiples given the kind of number, scale it has got. But more importantly, going by technical factors, once NSE gets listed, I believe it is going to have Rs 4-5 lakh crore or more market cap and it will be listed only on BSE because NSE shares cannot be listed on its own once that bigger stock comes and it is in F&O, in indices and everywhere, the BSE volumes per se will get a boost significantly by the NSE listing . So that is one. Now, as far as value is concerned, till the time we get some listing from the NSE, BSE will continue to attract investors. But looking at the broader capital market themes which will include AMCs, which will include wealth companies, and broking, the markets have been number of investors in the Indian markets has been going up and barring the correction which comes in from time to time, whether it is the wealth space or AMCs, this space can give very secular returns from here on. But if we look at the value of the last couple of years, will any significant re-rating happen in many of these companies including some of the service providers like CAMS? I think many of the stocks are already trading at 30 times, 40 times. So, while a significant re-rating might not happen, many of these stocks still provide a decent opportunity to make secure gains from here that is what I am saying. A BSE or NSE is a very different case altogether, but when it comes to others which includes AMCs, which, even CAMS and all, they have now reached the stage where there would be more secular returns because the re-rating potential in terms of PE is very has to bifurcate them into two parts. If you look at life insurance companies, whether it is HDFC Life or LIC or even Max, all have reported strong numbers. They seem to be looking pretty decent and that is also getting amply reflected in the way the stock prices are it comes to the non-life insurers, particularly the ones which are health insurance companies or companies catering to segments like vehicles and other insurances, the scenario is slightly different if you look at the recent numbers of Star Health or ICICI Lombard. That sort of growth is not visible there. In the last 4-6 months, life insurance has started taking the centre stage. In the last two to three years, there was a long consolidation happening in the life insurance industry and the stocks were moving in the same range for quite some time. Now with the growth revival, they have done of now, life insurance companies in particular have been doing far better and the momentum seems to be on their side. As far as non-life is concerned, we might see some action over there, but as of now the numbers and the trajectory does not suggest can look at them on a relative basis because definitely consumer companies are growing much slower, their PE multiples are higher, but IT services if you look at say recent past, it is a typical value trap kind of a situation. You just strip out a few years in between when they got some booster and they grew faster, otherwise the secular growth in some of these companies has not been that can argue that the PE multiples have corrected more than what they traded in 2022 because after the first wave of COVID everyone thought that work from home is a new normal, their costs have permanently come down, the margins are going to improve. But even Infosys, TCS started work from office and everyone's multiples got re-rated by 30% to 40% which have now been corrected over a period of of now, I see very little scope for any big surprise in terms of numbers because the global turmoil seems to be there both on the tariff side as well as on the growth side. The dividend yields or in the stocks the PE multiples are low. In terms of visibility and overall setup, I want to go for pure growth, then I would not be much keen on many of these IT names.I agree that some of the defence stocks or some of the consumer stocks are definitely expensive, but they are pure contra value stories. Whether they will start growing again and get re-rated is something which I am not very confident about.
India.com
4 days ago
- Business
- India.com
Meet man who is 'richer' than Musk, Mukesh Ambani, 'owns' half of the US, set to start business in India with..., name is...
Meet man who is 'richer' than Musk, Mukesh Ambani, 'owns' half of the US, set to start business in India with..., name is... Larry Fink is the CEO of BlackRock, the world's largest asset management company. The financial firm has assets of more than USD 11 trillion, which is less than half of the GDP of the United States – USD 30 trillion. Now, the company is eyeing starting a business in India. BlackRock is going to start the mutual fund business in India in collaboration with Mukesh Ambani's company, Jio Financial Services Limited. Notably, the financial firm's status can be estimated from the fact that, by January this year, it had assets worth USD 11.6 trillion, which is double or even triple the GDP of many countries. Who is Larry Fink Larry Fink is the individual responsible for overseeing the entire asset management business at BlackRock. He is the chairman and CEO of this global investment firm. Fink and his firm have investments in several companies of many countries across the world, having a strong hold on the entire global stock market. Although Larry Fink manages a tremendous sum of money, he isn't considered a billionaire in the traditional sense. This is because his wealth is primarily derived from managing public investments entrusted to BlackRock through mutual funds and other market-based vehicles, rather than personal ownership. The article explains the nature of his asset management business and his role within it. The Asset Management Business Asset Management Companies, also known as AMCs, are financial firms that are active in many financial businesses, such as mutual funds and investments. However, in the mutual fund business clients of these firms invest money for better returns. Since BlackRock is the world's largest asset management firm, its name holds a lot of significance for stock markets around the world. Larry Fink Started Out With 7 Friends Lawrence Fink and seven partners founded BlackRock in 1988. Over the subsequent 37 years, under Fink's leadership, it grew into the world's largest asset management firm, holding investments in numerous major global corporations, including prominent companies in both the United States and India.
Economic Times
24-05-2025
- Business
- Economic Times
India's Mutual Fund revolution: direct plans surge as young investors take charge
India's asset management industry is undergoing a structural transformation, driven by rising investor maturity, fintech adoption, and regulatory reforms. With assets under management (AUM) in direct mutual fund plans growing steadily, the sector is witnessing a democratisation of investment, spearheaded by younger, digital-first investors. This evolving landscape presents a compelling opportunity from an investment perspective. ADVERTISEMENT As of March 2025, direct plans account for 30% of the mutual fund industry's equity AUM—up from 21% in March 2020—signalling a strong shift towards low-cost, self-directed investing. This transition has been accelerated by the rise of fintech platforms like Groww and Zerodha, which offer commission-free investment options with easy digital onboarding. While corporates continue to dominate direct AUM at 61%, retail participation is gaining traction, particularly through systematic investment plans (SIPs). In fact, the share of direct SIP AUM among individuals aged 18–34 rose to 23.6% in March 2024, highlighting the changing investor profile. The deeper penetration of mutual funds into India's B30 (beyond top-30) cities has emerged as a powerful growth catalyst.B30 equity AUM clocked a 37% CAGR from FY20 to FY25, aided by increased financial awareness, digital adoption, and AMFI's investor education initiatives. Direct plans' share in B30 cities has also surged, supported by the growing financial independence of women and young despite the rapid rise of direct plans, regular plans still exhibit better investment discipline. Only 7.7% of direct plan AUM was held for over five years, compared to 21.2% in regular plans. This highlights the enduring value of professional guidance, especially for retail investors prone to reactive investment behaviour. ADVERTISEMENT From an investment standpoint, AMCs are adapting swiftly. Market-leading AMCs are enhancing their digital platforms and shifting toward trail-based commission structures, positioning them well to capture value from both self-directed and advisor-led segments, balancing innovation with advisory the other hand, distributor-led models face headwinds, although their deep B30 presence and digital evolution offer some resilience. Overall, the AMC sector stands at the cusp of a long-term growth cycle, benefiting from higher retail participation, direct plan adoption, and structural shifts in savings behaviour. ADVERTISEMENT Investors may consider this sector for its scalable business models, strong brand franchises, and alignment with India's long-term financialization theme. ADVERTISEMENT HDFC AMC demonstrated robust financial performance in 4QFY25, with operating revenue surging 30% YoY to INR 9 billion. EBITDA climbed 35% YoY to INR 7.3 billion, and PAT rose 18% YoY to INR 6.4 billion, boosted by higher other income. The company maintained strong 81% EBITDA margins. For FY25, PAT increased 26% YoY to INR 24.6 billion, despite a slight dip in SIP an improved market position, a well-diversified product portfolio, and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders. For FY26/FY27, we expect 12%/18% growth in equity AUM and 13%/16% growth in total AUM. ADVERTISEMENT NAM reported 21% YoY revenue growth to INR 5.7b in 4QFY25, with PAT at INR 3b (10% beat, -13% YoY) aided by tax reversals and strong other income. Market share in QAAUM rose to ~8.3%, with equity share at ~6.9%. NAM retains ETF leadership and is diversifying to sustain SIP growth amid volatility.A new Japan scheme enhances global access to Indian markets. Despite expected moderation in equity yields, strong net flows will cushion overall yield pressure. Continued product innovation, improved fund performance, and rising passive share support our Buy rating, positioning NAM well for sustained long-term growth. (The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.) (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
India Gazette
23-05-2025
- Business
- India Gazette
DTC issues new SOP, faulty buses to be removed within 15 minutes
By Tanya Chugh New Delhi [India], May 23 (ANI): The Delhi Transport Corporation (DTC) has issued a new SOP to remove broken-down buses in the national capital and has deployed cranes and Quick Response Teams (QRTs) at 30 key locations across the city that will monitor and function to remove the faulty buses. Under the new SOP, the faulty buses will be removed within 15 minutes. The buses purchased in 2010 have reached the end of their service life, and their Annual Maintenance Contracts (AMCs) have also expired, so the government plans to remove them from the roads, said a senior official. At least 100-123 buses break down daily, especially in areas like ISBT Kashmere Gate, Minto Bridge, Sarai Kale Khan, ITO, AIIMS Flyover, and Dhaula Kuan. Keeping this in mind, the new SOP has been issued, he added. As per the new SOP Issued, the QRTs formed will have to respond within 5 minutes of receiving a breakdown alert. After this, the buses will be towed to the nearest depot within 15 minutes. An around-the-clock control room has been established for the same. The waterlogging problem will also be monitored through it. To make it function smoothly, 100 field operation teams have been deployed, and 70 mobile bike teams will fix on-site issues like brake failure. This decision comes in a bid to improve the transport infrastructure and facilities in the state. The main focus is to remove the buses that have reached their end of service life and are not in condition to be used. The government has also planned to make the bus depots in Delhi commercial hubs, which will generate revenue of Rs 2600 crore. On May 2, the Delhi government also launched mini electric buses, DEVI, in the national capital to boost last-mile connectivity. The government further plans to launch more electric buses on the roads of the national capital. (ANI)
