Nomura initiates Indian asset managers with 'buy' and 'neutral'; shares rise

Nippon Life India Asset Management

09/10/2024 08:12

** Shares of HDFC Asset Management  HDFA.NS , Nippon Life
India Asset Management  NIPF.NS  and UTI Asset Management
 UTIA.NS  rise 4.2%, 1.7% and 2.5%
    ** Nomura begins coverage of HDFA and NPIF with a 'buy' and
UTIA with a 'neutral' rating
    ** HDFA, NIPF rated "buy" on avg, UTIA "hold" - LSEG data
    ** India's mutual fund penetration trails global average and
at 3.2% has "significant room to grow" - Nomura
    ** Says HDFA among most profitable AMCs and is poised to
capture more market share in the future
    ** NIPF best-placed to benefit from rising industry flows,
especially in small-/mid-cap segments, it says
    ** Sets PT of 5,000 rupees to HDFA, a Street-high; NIPF and
UTIA get PTs of 785 rupees and 1,300 rupees - second-highest
among brokerages
    ** NIPF leads YTD gains among the firms with ~45% rise, UTIA
up ~44% and HDFA up 36%

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))