Want to play booming capital market theme on D-Street? BSE, HDFC AMC, UTI AMC, 6 other stocks MOFSL is bullish on
MOFSL believes in the backdrop of digital enablers as well as favourable demographic trends, the country's capital market looks set for multi-year structural uptrend.
Motilal Oswal Financial Services (MOFSL) citing remarkable growth of the Indian Capital market in the last five years believes that the entite ecosystem comprising AMCs, exchanges, brokerages, wealth managers, and other intermediaries can serve as good bets. The brokerage remains bullish on the space as it sees past growth as the precurson to a sustained, multi-year structural uptrend, fueled by favorable demographic trends as more individuals enter the workforce, contributing to the expansion of the middle class.
Digital enablers such as E-KYC, UPI, and Account Aggregation have played a key role in facilitating this growth. Regulatory reforms have further strengthened the ecosystem, enhancing transparency and security for investors, added the brokerage.
Consequently, we believe AMCs, exchanges, brokers, wealth managers, and other intermediaries are wellpositioned to capitalize on these emerging trends
Stocks to buy HDFC AMC
MOFSL has given its buy rating on the stock with a target of Rs 5,200, implying potential gains of 14.5 per cent.
Strong fund performance for three years led to 150bp market share gains in equity segment in two years, added the brokerage.
Stocks to buy: Nippon AMC
The brokerage is bullish on the counter and has given its 'buy' call for a target of Rs 900- implying gains of over 14 per cent.
MOFSL said the company holds leadership position in the non-EPFO passive segment plus strong growth from offshore assets will be the next growth triggers.
Stocks to buy: Aditya Birla Sun Life AMC or ABSL AMC
The stock is given a buy for a target of Rs 1,100- implying probable gains of 33 per cent. Recent pick up in fund performance should translate into market share gains in the medium term; strong focus is also on deepening distribution, pointed out the brokerage.
Stocks to buy: UTI AMC
The brokerage is bullish on UTI AMC and has given it a 'buy' call for a target of Rs 1,600- implying probable gains of 15 per cent.
MOFSL believes new geographies & products will drive UTI International growth. Furthermore, UTI RSL will gain from pension demand growth.
Stocks to buy: Angel One
The brokerage is bullish on the broking entity Angel One and has recommended buying it for a target of Rs 4,200, meaning potential gains of nearly 24 per cent.
MOFSL in its report highlighted that Rs1,500 crore fundraise, new features on app, and a new investment tool are set to drive near-term broking business
Stocks to buy: BSE
The brokerage house is bullish on the country's largest exchange and has given it a buy call for a target of Rs 6,500. The pegged target implies potential gains of around 17 per cent.
Giving its rationale for the buy call, the brokerage said, "Sensex/Bankex have gained market share in the options segment, with an overall notional/premium T/O market share of 25 per cent+/10 per cent."
Stocks to buy: 360 ONE WAM
The brokerage has recommended to buy this stock broking and allied services firm for a target of Rs 1,350. MOFSL noted that the company is fortifying its leadership in the UHNI segment through geographical expansion and hence views that the AMC is well poised for sustained growth in alternate space.
Stocks to buy: Nuvama Wealth
MOFSL recommends buying Nuvama Wealth for a target of Rs 8,800 for gains of up to 21 per cent. The brokerage believes the AMC will grow multi-fold in three years; furthermore its custody business is a proxy for growing FPI participation in Indian F&O market.
Stocks to buy: CAMS
For the depositories major, MOFSL has pegged the target at Rs 6,000- implying gains of 15 per cent.
MOFSL deems CAMS as the perfect proxy for mutual fund growth. The company is the largest mutual fund Registrar and Transfer Agent (RTA) with around 68 per cent AUM market share in a duopoly market.