Market seems to have finally realized this co now. However advising caution since Q1 results may not be good and I feel they have hardly gathered any Equity AUM in Q1.
Have liquidated 25% of the holdings at these levels.
Market seems to have finally realized this co now. However advising caution since Q1 results may not be good and I feel they have hardly gathered any Equity AUM in Q1.
Have liquidated 25% of the holdings at these levels.
Good to see management going aggressive on new fund launches with 2 NFOs. Multi Sector Rotation Fund (https://www.shriramamc.in/smurf) and Liquid Fund (https://www.shriramamc.in/liquidfund).
A new Fixed Income Fund Manager has recently joined their Investment team. (Shriram AMC Enhances Fixed Income Team with the Appointment of Mr. Sudip More as Fund Manager - APN News)
Another interesting appointment of Head of Wealth Management seen on LinkedIn (Donāt think Wealth Management biz comes under the listed AMC, but gives comfort as Shriram has accelerated the Wealth Management Biz). (Vikas Satija on LinkedIn: Iām happy to share that Iām starting a new position as Head of Wealthā¦ | 255 comments)
One major concerning factor is that their AUM is still not growing at a faster pace. Equity AUM stands at 482cr as of Sep 2024.
Another tepid results as expected. Will keep on reporting higher losses as they onboard more employees and as AUM will come with lagā¦ Employees as of Sep - 70 (March24 - 51)
In a recent interview MD mentioned launch of PMS biz this quarter. Another takeaway was employees of Shriram Finance are undergoing certification and training (for group distribution). Link below
Have added back 25% qnty which was sold earlier as the financialization theme is hitting all time highs be it UTI/Nippon/HDFC AMC, BSE/MCX, Nuvama/Anand Rathi Wealth Management and distributorsā¦
Disclosure: Invested . Not a registered RIA. Not a buy/sell recommendation. Consult your Investment Advisor.
Business is trading at ~500 crore+ valuation. It is implying an equity AUM of 4,000-5,000 crores
Can it reach 4,000-5,000 crores Equity AUM even in the next 3-5 years, given the current rate of AUM addition?
It takes only ~50 crores of networth to get AMC approval - there have been multiple new entrants in the AMC space (eg. Helios MF, Capital Mind etc.). Capital constraint is not as issue, IMO
Intense competition: Industry is dominated by captive banca-distribution-led AMCs
The argument on ābrand nameā seems weak. Shriram brand name is not associated that well in the mutual fund industry
Discl: not invested, tracking
Hi. All your arguments are justified. Have addressed all these issues in my previous comments on 8th April and shared my view on why 500crs for a AMC + PMS biz is very cheap. Pls go through the comments once.
Start-up was in the sense that it just had 8 employees since 1990ās and now from last year have start recruiting. From 8 employees in Sep 2022 to 70 employees in Sep 2024. Most of the employees would be recruited for back-end/ systems initially. Its at initial phase of scale up and will take time. It has no innovative product yetā¦
Shriram brand is obviously not associated in the MF industry. Thats where the optionality lies and hence it just trades at 500crs valuation
@DeepVal Looks like the MD has heard you and have addressed your queries in the video below:
Good to see Sanlam acquiring 23% stake in the co.
Also there is a open offer
What i didnāt like is the 30% dilution in equity and also the price at which they are acquiring.
Awaiting PMS launch announcement as mentioned earlier.
Disclosure: Invested. Top holding (no major transactions in last 30 days) . Not a registered RIA. Not a buy/sell recommendation. Consult your Investment Advisor.
Yeah, I agree. The dilution is not so appealing but I guess that was the only way to get them onboard as a promoter with prominent stake. It is nice to see Shriram, Sanlam and Mission1 LLC present. Hope they can take this to great heights. Also the open offer is a mandatory offer that is triggered due to the nature of the deal. No body will participate anyway.
Finally they have launched their own PMS with 3 products.
Should provide valuation comfort at these levels. Hope the AUM starts scaling now. Employee base as of Nov 2024 stands at 78.