FII Mover & Shaker CLSA Downgraded the Reliance AMC Stock Target Price.
CLSA Earnings estimates to now factor weaker growth in AUMs and despite a slower rise in top-line earnings can see mid-teens growth due to lower costs. Key will be to watch for repayments from exposure to promoter group companies (Rs3.8bn – 15% of net worth). They lowered target price from Rs310 to Rs230 based on 22x Mar20 PE, and maintain a BUY rating.
Reliance Nippon AMC lost market share in segments such as high-net-worth-individuals (HNI) as well as corporates that are larger investments in the debt and liquid funds.
