HDFC AMC, Angel One, NAM, UTI AMC, 360 ONE WAM, Nuvama: JM shares top picks

JM Financial expects a mixed September-quarter (Q2FY26) performance from India’s listed asset managers and wealth firms, as weak equity markets weigh on other income even as core operating trends remain resilient.

The brokerage noted that despite the Nifty falling 4 per cent during the quarter and a steeper correction in mid- and small-cap indices, equity-oriented average assets under management (AAUM) for mutual funds are likely to rise over 5 per cent, supporting core revenues and earnings.

For asset management companies (AMCs), JM Financial projects quarter-on-quarter (QoQ) growth of 4–6 per cent in core revenues and 3–11 per cent in core earnings, led by UTI AMC, followed by Nippon Life India AMC (NAM) and HDFC AMC. However, muted other income could drag reported profits sequentially, it said. On a year-on-year (YoY) basis, JM expects HDFC AMC to post a 12 per cent rise in profit after tax (PAT), while NAM and UTI AMC may see YoY declines of 3 per cent and 33 per cent, respectively.

Among broking and wealth management companies, the firm expects 360 ONE WAM to lead with 20 per cent YoY PAT growth, supported by its foray into high-net-worth (HNI) and broking segments. Nuvama Wealth Management is seen posting modest 3 per cent PAT growth, while Angel One could see a sharp 42 per cent YoY decline, though its quarterly profit may more than double sequentially (up 114 per cent QoQ).

JM said all three of 360 ONE WAM, Nuvama and Angel One are entering adjacent segments – 360 ONE WAM to HNI and broking segments, Nuvama WM expanding in wealth and AMC from a capital markets heavy business and Angel One expanding into client funding and third party distribution. 

It believes 360 ONE WAM has taken the costs over FY25 and should see strong PAT growth hereon. It expects wealth management yields to be supported by its HNI foray while broking adds revenue and profits. 

"In Nuvama, we see a play towards higher recurring revenue even as earnings growth looks weak on a strong base of 55 per cent growth in FY25. Meanwhile, while Angel diversifies its revenue, the stock has corrected with declining market volume (and revenue), and offers a good entry point, subject to continuity in regulatory stance in the options expiry calendar," it said.

In terms of preference, JM Financial remains constructive on wealth managers, highlighting 360 ONE WAM as its top pick given the scalability of its HNI and broking expansion, followed by Nuvama and NAM.

Within AMCs, the brokerage continues to prefer NAM over HDFC AMC, citing sustained inflows and improving earnings visibility. It raised its target price for Nippon AMC to Rs 975 while cutting the target for UTI AMC to Rs 1,444.  

"We continue to prefer NAM in the AMC space, followed by HDFC AMC. Given the mutual funds’ efforts to rationalise distributor commissions, we wait for company concalls to review yields," it said.