Brokerages raise ratings on Nippon, HDFC AMCs following better Q3 show

Among the four listed AMCs, two report profit growth in Q3, other two see a decline

Brokerages have raised their ratings on two of the top asset management companies (AMCs) in India — HDFC and Nippon Life India — after they managed to raise their profits in the third quarter of financial year 2022-23. While HDFC AMC's profit went up 2.7 per cent in the previous quarter, Nippon AMC's bottom line expanded 18 per cent.

Apart from the AMCs' individual performances, the brokerages' bullishness is also driven by the positive long-term outlook of the industry. "Long-term prospects of the Indian AMC industry remain intact given the low penetration levels in India vis-à-vis developed countries and is