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.
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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.
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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.
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Business is trading at ~500 crore+ valuation. It is implying an equity AUM of 4,000-5,000 crores
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Can it reach 4,000-5,000 crores Equity AUM even in the next 3-5 years, given the current rate of AUM addition?
- Should it really be thought of as a startup?? Itās a 20 year old company/business.
- Start-ups that command exorbitant valuations are disruptive in nature, and grow at exponential rates. Does this company exhibit start-up traits?
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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
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Intense competition: Industry is dominated by captive banca-distribution-led AMCs
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The argument on ābrand nameā seems weak. Shriram brand name is not associated that well in the mutual fund industry
Discl: not invested, tracking
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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:
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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.
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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.
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Hi all. Just wanted to check if anyone knows how to track PMS AUM data. Wanted the source?
Also checking if anyone attended their AGM on 8th Jan. Can share inputs pls?
Hi @rp6, you can check APMI or PMSbaazar websites for tracking PMS AUM data. I personally prefer APMI. Link APMI
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hii, is there any site where we can check AIFs AUM also ???
Check here SEBI | Portfolio Manager Monthly Report
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As expected a tepid results from Shriram AMC. The only positive being that it has crossed an AUM of 1027crs this Dec 2024 (from 253crs in Oct 2023). Can see an increase in expense ratio for all the funds in Dec 2024, when compared with Nov 2024.
Awaiting Sanlam stake annoucement (pending due to regulatory approvals)
Have added additional 20% position in this fall in last 2 weeks.
We canāt be expecting any decent results for the next year or maybe more at least. The reason to buy is that this company is being backed by Shriram group which is a $10B+ company and Sanlam which is also nearly a $10B company.
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Sharing articles on Sanlamās Investment in Shriram AMC and Shriram Wealth (unlisted).
Why Sanlam does not want to go solo in India | Mint - Imp highlights below:
Added some qnty last week.
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The Sanlam acquisition cleared by CCI. SEBI approval might be pending.
Added today in the fall as someone was desperate to sell.
Now 15% of my PF.
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1744421267780.pdf (1.6 MB)
Found an interesting article of MD which highlights:
- Shriram Finance, the flagship company, now has an ARN for mutual fund distribution.
- Looking ahead, our goal is to maintain this growth trajectory. If youāre looking for specifics, weāre aiming for a 3X growth in two years, or whatever that translates to in numbers.
Meanwhile, Allotment to Sanlam for 23% stake is done with all approvals.
At ~800crs mcap (after considering above allotment), Shriram AMC seems fairly valued for now.
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Just sharing press release uploaded today with some more updates below:
Other update:
If you see the linkedin page of Shriram Wealth (not part of listed entity), they are hiring left and right majorly from existing wealth management firms. They currently have 79 employees in March 2025 from just 2 employees in Nov 2024 (Shriram AMC has another 77 employees). I understand they will be distributing products including Shriram Mutual fund, Shriram PMS, Shriram FDs, direct broking, etc.. This should help accelerate AUMās further. This proves that Shriram grp is now serious on the financial savings space.
https://www.linkedin.com/company/shriram-wealth/posts/
Shriram AMC has expanded to a new office. More hirings coming.
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Itās Shriram Asset Management Co Ltd
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Good to see stock back to All time Highs. However, valuation seems stretched for now at Mcap of 1100-1200crs.
Shriram Wealthās (unlisted entity - not part of listed entity) news today
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