Brokerages snip price targets of AMCs on feeble Q4 earnings

See regulatory risks to yields; most maintain 'buy' call on improved valuations, long-term growth potential

Brokerages have lowered the price targets of asset management companies (AMCs) since they failed to beat revenue growth expectations in the January-March quarter (fourth quarter, or Q4) of 2022-23 (FY23). The regulator’s plans to lower the fee charged by AMCs also added to concerns.

While HDFC AMC and Nippon Life India AMC reported modest growth in revenue from operations in Q4FY23, UTI AMC and Aditya Birla Sun Life AMC delivered yet another weak quarter.

The revenues of Nippon Life India and HDFC rose 3 per cent and 5 per cent, respectively. UTI’s revenue for the quarter was flat at Rs