Author Topic: CLSA Downgrades Reliance Nippon AMC Target  (Read 29 times)

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CLSA Downgrades Reliance Nippon AMC Target
« on: May 06, 2019, 08:18:14 AM »
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.