Upgrades

We maintain our BUY recommendation on the stock

About the stock: Nippon Life India AMC (Nippon) is among the largest asset managers in India with total AUM size of 7.6 lakh crore+. Focus on strong distribution network (1,19,200+ distributors) and passive schemes (ETF Market share of ~20% on QAAUM basis) remains key strategy....

Strong distribution network with 280 branches and over 1,03,000 empanelled distribution partners Q2FY26 performance: HDFC AMC continues to report healthy set of result as expected. Market share and revenue yields across asset classes were broadly maintained esp. w.r.t. equity-oriented schemes. Closing AUM grew 2% QoQ to 8.8 tn with market share of 11.5%. High yielding equity mix maintained at healthy proportion of 66% vs industry average of 58%. EBITDA margin remains healthy though it declined 190 bps QoQ to 77.9% owing to sharper increase in staff and...

HDFC AMC’s operating revenue grew 16% YoY/6% QoQ to INR10.3b (in line) in 2QFY26. Yields came in at 46.6bp vs. 46.8bp in 2QFY25 and 46.7bp in 1QFY26. For 1HFY26, revenue grew 20% YoY to INR20b.

Nippon AMC is expected to continue its growth momentum, led by its strong position in the Indian mutual fund industry, diversified product suite and robust growth trajectory. Its ability to capitalise on the growing demand for financial services in India, coupled with its expanding market share and increasing digital presence, positions it for long-term success. Its commitment to launching new products, including alternative investment funds and ETFs, further underscores its growth potential. Although the industry is competitive, we believe Nippon AMC's...

We maintain our BUY recommendation on the stock

NAM saw a stable quarter as QAAuM and core income were largely in-line. Despite strong equity QAAuM growth of 9.1% QoQ and fall in equity share by 37bps QoQ, blended yields were higher to PLe by 0.9bp since (1) company is still benefitting from commission rationalization and (2) ETF yields improved by 2bps QoQ due to sizable growth in higher yielding AuM. NAM continues to gain market share in equity MAAuM as share in net equity flows (ex-NFO) is healthy at 11.4% in Q1FY26 (10.6% in FY25) which is higher than stock MAAuM...

Nippon Life India AMC’s (NAM) operating revenue grew 20%/7% YoY/QoQ to INR6.1b (in line) in 1QFY26. Yields declined to 39.6bp from 40.7bp in 4QFY25 and 41.8bp in 1QFY25.

HDFC AMC logged a strong quarter, driven by steady revenue yields and significant growth in AUM. The debt market's outlook remains positive, aided by the Reserve Bank of India's supportive measures, such as interest rate cuts to boost fixedincome investments. HDFC AMC's improved market standing, diversified product portfolio, launch of new specialised investment funds, strong retail presence and digital initiatives position it for sustained growth and long-term value creation. Furthermore, although there has been a temporary decline in the share of equity AUM, a positive turnaround is anticipated in the near future. Therefore, we upgrade...

UTI AMC’s 1QFY26 operating revenue stood at INR3.8b (in line), up 13% YoY/6% QoQ. Yield on management fees stood at 42bp in 1QFY26 vs. 43.4bp in 1QFY25 and 42.4bp in 4QFY25.

Aditya Birla Sun Life AMC’s (ABSLAMC) 1QFY26 operating revenue grew 16% YoY to ~INR4.5b (in line), leading to YoY improvement in yields to 44.4bp from 43.9bp in 1QFY25 (vs. our est. of 44.7bp).

HDFC AMC’s operating revenue grew 25% YoY/7% QoQ to INR9.7b (in-line). Yields for the quarter came in at 46.7bp vs 46.2bp in 1QFY25 and 46.6bp in 4QFY25.

UTI AMC’s fund performance over the past five months has improved considerably, with an average of ~70% equity AUM appearing in Q1 and Q2 on a one-year return basis in May’25 vs an average of 25% in the preceding 12 months.

QoQ at 33.9bps. Equity performance in 1-yr bucket has been consistently improving since Mar'24, and 59% of equity AUM is in quartile 1 & 2 as of Mar'25. A dilution of 1-2bps is expected in yields which will be cushioned by commission rationalization carried out in Q4FY25. Staff cost is guided to grow by 3%/5% at the standalone/consol level; we envisage other opex to grow at an 11% CAGR...

HDFCAMC saw a soft quarter as core income missed PLe by 2.3% due to revenue being 1.7% lower led by weaker yields at 46.6bps (PLe 47.5bps) as (1) equity share fell QoQ to 60% from 61% to market correction in Feb'25 and (2) Q4FY25 has 2 lesser days (vs Q3FY25). Equity performance within the 3-yr bucket remains superior, which resulted in strong net flows' market share of 12.9% in FY25. New ESOP scheme of 2.5mn shares has been approved which is awaiting shareholder approval. Hence, we raise staff cost for FY26/27E by 7%/3%. Closing equity AuM for the industry corrected by 3.0% over Dec'24Mar'25 and markets continue to remain volatile. Equity flows for the industry...

HDFC AMC’s operating revenue was up 30% YoY/down 4% QoQ at INR9b (in line) in 4QFY25. Yields for the quarter came in at 46.6bp vs. 45.4bp in 4QFY24 and 47.5bp in 3QFY25. FY25 yields stood at INR35b, up 35% YoY.

We maintain our BUY recommendation on the stock