“I think there’s a great opportunity to enter HDFC AMC at these levels. I think the valuation is pretty low or attractive at this point,” he said.
Mangal noted that HDFC AMC has three equity schemes with assets exceeding ₹1 lakh crore—its Mid Cap Fund, Flexi Cap Fund and Balanced Advantage Fund—and all three rank in the top quartile over the three-, five- and ten-year periods.
HDFC AMC’s overall assets under management (AUM) grew 13% year-on-year in the June quarter, while equity AUM rose 16%. Although ICICI Prudential AMC reported faster growth in both overall and equity AUM, HDFC AMC continues to enjoy a strong position because of its flagship equity schemes.
Centrum Broking has a target price of ₹3,340 for HDFC AMC, valuing the stock at 37 times September 2028 earnings, implying an upside of more than 25% from current levels.
ICICI Prudential AMC also deserves a premium valuation because of its stronger AUM growth and expanding non-mutual fund business, which has become an important driver of earnings, he said.
He also believes wealth management offers the strongest long-term growth opportunity. “Wealth is something that we are kind of very, very bullish on,” Mangal said, adding that “the wealth managed professionally is very low in India as compared to the developed countries. So obviously there’s a runway on that front.”
Among his preferred picks, he highlighted 360 ONE WAM, citing its strong growth, wide product offering and benefits from the Batlivala & Karani (B&K) Securities acquisition.
Besides 360 ONE WAM, he also maintained a positive view on Nuvama Wealth, saying the brokerage has been constructive on the stock and is encouraged by its strong performance.
Watch the full conversation here
On stock exchanges, Mangal observed that recent regulatory changes have led to a decline in index options premium turnover in July. However, he does not expect this to significantly hurt quarterly earnings and believes both NSE and BSE should still post healthy results.
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