Mixed show for AMCs in second quarter; limited scope for stock rally

From a stock performance perspective, analysts appear to be divided, with many anticipating only modest returns due to valuation concerns

The 2023-24 (FY24) July-September quarter (second quarter, or Q2) proved to be a mixed period for asset management companies (AMCs). While the two largest listed AMCs, HDFC and Nippon, reported robust growth in both revenue and profits, the other two, Aditya Birla Sun Life and UTI, experienced profit declines.

HDFC AMC reported an 18 per cent year-on-year increase in Q2 revenue to Rs 765 crore, while Nippon’s revenue rose 15 per cent to Rs 475 crore. Their net profits also increased by similar percentages, at 20 per cent and 18 per cent, respectively.

In the case of Aditya Birla Sun