In its latest report, Nuvama has flagged near-term risks for India’s asset management companies (AMCs), particularly those with high exposure to small and mid-cap (SMID) segments, following the recent sharp correction in equity markets. The brokerage notes that NAM India and UTI AMC are likely to report significant sequential declines in equity AUMs, driven by mark-to-market losses.
While HDFC AMC and UTI AMC have shown improved performance rankings over the past year, NAM’s portfolio performance has slightly dipped, although inflows remain well-diversified across schemes. Nuvama has revised down its FY26E/27E estimates for net inflows and market returns, triggering sharp earnings downgrades across the AMC and RTA universe.
As a result, CAMS has been downgraded to ‘Hold’ with a reduced target price of ₹3,970. However, HDFC AMC (TP: ₹4,610) and Nippon Life AMC (TP: ₹680) remain top BUY ideas, supported by their robust franchise, brand strength, and balanced product offerings.
