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Aditya Birla Sun Life AMC - Highest Return Ratio Listed Asset Manager: Yes Securities Initiates Coverage

Aditya Birla Sun Life AMC - Highest Return Ratio Listed Asset Manager: Yes Securities Initiates Coverage

Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)
Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Yes Securities Report

We examined, carefully, the asset management sector, taking a comprehensive look at the four listed asset managers and SBI MF. We liked the thesis around Aditya Birla Sun Life AMC Ltd. due to the following reasons:

  1. a number of factors, including the Aditya Birla brand, have come together to establish an individual investor franchise, driving profitability,

  2. the lack of a bank sponsor has not held back growth due to a strong distribution network of banks, national distributors and mutual fund distributors, along with other factors,

  3. healthy share of systematic investment plan book in assets under management is indicative of greater stickiness in revenue and strong focus on underlying drivers,

  4. effective cost control demonstrated by comparably lower cost to AUM,

  5. strength in fixed income business complements the equity business,

  6. while we acknowledge competitive pressure in the industry, we think the overall size of the pie will continue to rise.

Click on the attachment to read the full report:

Yes Securities Aditya Birla Sun Life Initiating Coverage.pdf

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