There is no clear trend, the best way to identify the opportunities would be to analyse sectors. Asset management companies are a good space to sell. All AMCs had to reduce upfront commission as per Sebi and therefore the expenses the AMC companies were reporting has automatically reduced and as a result profits are rising. Till September, we will have fantastic returns.
HDFC AMC has to divest in next 3-4 months. Currently valuations are great but it will not sustain and growth will come down, may be two quarters down the line and there will be re-rating in PE multiple. This is an ideal time to book profits. HDFC AMC will offer great value once it comes down, says Umesh Mehta, Head of Research, SAMCO Securities.
