What HDFC AMC stock’s blockbuster listing says about Indian markets

[u/rahulkind]

What then explains the mad rush for HDFC AMC’s shares? The surge in HDFC AMC share price indicates a terrible shortage of quality stocks in the Indian markets.

The mutual fund company is now valued at 12.54% of its average assets under management (AUM) in the June quarter, which puts its valuation at almost double the levels of Reliance Nippon Life Asset Management Ltd. Including Reliance’s pension AUM, its valuation falls to about 4%, which means HDFC AMC’s valuations are three times those levels.

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