Nippon Life AMC is narrowing its valuation gap with HDFC AMC
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Nippon Life India Asset Management Co. Ltd’s (NAM) valuations have always lagged behind sector leader HDFC Asset Management Co. Ltd. But the gap has narrowed considerably in recent months. NAM has outpaced its larger rival with 25% gains in 2021. In comparison, the HDFC AMC stock has returned a meagre 3%.
NAM may just be able to hold that lead this year. Analysts attribute the improved show largely to the better performance of some of its funds. This could even help market share gains in Q4 and build on NAM’s quarterly average 11.6% year-on-year growth in assets under management (AUM). The industry leader, meanwhile, has seen market share losses, especially on the equities side, which also helped NAM shares outperform.