Nomura bets on HDFC AMC, NAM amid strong AUM, operating profit growth hopes

Nomura on AMCs: Japan-based brokerage firm Nomura has reiterated its bullish stance on HDFC Asset Management Company (HDFC AMC) and Nippon Life India Asset Management (NAM India), citing robust growth in assets under management (AUM) and healthy operating profit.

 

“We prefer HDFC AMC (HDFC AMC IN, Buy) and NAM (NAM IN, Buy), due to their strong AUM and operating profit growth outlook,” said Ankit Bihani and Parth Desai, research analysts at Nomura, in a note dated June 10.

 

Nomura has retained its target prices for both stocks—₹4,272 for HDFC AMC and ₹624 for NAM India.

 

Notably, Over the past month, shares of HDFC AMC and NAM have rallied 13 per cent and 16 per cent, respectively, BSE data showed.

 

 

The brokerage highlighted steady systematic investment plan (SIP) flows and a healthy rise in SIP accounts despite a broader moderation in mutual fund inflows during May 2025.  Catch Stock Market Updates Today LIVE

 

“Monthly equity mutual fund (MF) inflows (excluding arbitrage) moderated to ₹24,200 crore, down 10 per cent month-on-month (M-o-M) in May,” Nomura analysts said.

 

However, the brokerage pointed out that the recent surge in new fund offerings (NFOs) helped partially offset this moderation, with NFO inflows jumping to a four-month high of ₹3,590 crore, compared to just ₹170 crore in April. Sectoral and thematic fund NFOs alone contributed ₹1,790 crore, indicating strong retail interest in niche investment ideas.

 

Despite the decline in headline equity inflows, SIP inflows remained steady at ₹26,700 crore, flat on a monthly basis but up 28 per cent year-on-year (Y-o-Y). SIP AUM grew to ₹14.6 trillion (up 27 per cent Y-o-Y, up 5 per cent M-o-M), reflecting continued investor confidence in long-term wealth creation through disciplined investing. The number of contributing SIP accounts also rose to 8.56 crore, up 2 per cent M-o-M.

 

The SIP stoppage ratio, a key metric indicating account discontinuation, began to normalise in May and stood at around 72 per cent, after a spike in April linked to regulatory compliance checks.

 

However, inflows across major equity fund categories declined. Large-cap funds saw the sharpest fall at 53 per cent M-o-M, with net inflows of ₹1,300 crore. Small-cap and mid-cap funds also registered a slowdown, drawing ₹3,200 crore and ₹2,800 crore, respectively, while flexi-cap fund inflows dropped to ₹6,800 crore. Sectoral and thematic funds, by contrast, remained steady with ₹2,100 crore in inflows, and large+mid-cap funds saw a marginal rise to ₹2,700 crore.   

 

On the debt side, mutual funds witnessed a sharp fall in inflows to ₹20,700 crore in May from ₹43,800 crore in April. Liquid funds, which had seen a massive surge in April, reversed course with outflows of ₹37,100 crore. The AUM for debt and liquid funds stood at ₹8.9 trillion and ₹8.8 trillion, respectively.

 

Passive schemes were also hit, with inflows dropping sharply to ₹5,500 crore from ₹20,200 crore the previous month.

 

Total mutual fund industry AUM reached approximately ₹72 trillion in May, up 23 per cent Y-o-Y and 3 per cent M-o-M. Of this, equity AUM constituted around ₹42 trillion, contributing 58 per cent to total industry AUM — a 118 basis points (bps) increase from a year ago.

 

That said, despite near-term fluctuations in flows, Nomura analysts’ conviction in these asset managers reflects confidence in their ability to sustain growth, ride structural industry tailwinds, and deliver consistent performance for investors.