According to reports from The Financial Express, Nuvama has assessed four market-linked businesses - Computer Age Management Services (CAMS), HDFC Asset Management Company (HDFC AMC), Central Depository Services (India) (CDSL) and BSE - to determine which companies can handle weak market conditions better. The brokerage believes market weakness creates selective opportunities rather than a broad-based call across all four companies. CAMS and HDFC AMC are Nuvama's preferred picks, trading at attractive valuations of FY28E PE of 26x/28x and FY28E EV/NOPLAT of 26x/30x respectively. As per the latest market data, CAMS is currently trading at ₹698 with a market cap of ₹17,266.38 crore and PE ratio of 38.05, while HDFC AMC trades at ₹2,327.5 with a market cap of ₹100,875.16 crore and PE ratio of 34.2. The latest market data shows HDFC AMC's weight in the BSE 500 Index Fund Direct Growth scheme at 0.26%, indicating continued institutional interest despite market volatility.
As reported by The Financial Express, the Nifty 50 declined 5.2% in Q2FY27, which could limit growth in quarterly average assets under management for asset management companies. However, monthly SIP flows remained strong at ₹32,000 crore in July and ₹32,300 crore in August 2026. Nuvama expects listed AMCs to report aggregate revenue growth of 10.8% year-on-year and 3.8% quarter-on-quarter. The latest market data confirms HDFC AMC's continued institutional appeal with a 0.26% weight in the BSE 500 Index Fund Direct Growth scheme, demonstrating sustained investor confidence despite market headwinds. The brokerage estimates CAMS could deliver sequential net operating profit after tax (NOPLAT) growth of 1.8% while HDFC AMC is projected to achieve 6.1% sequential NOPLAT growth. For CAMS, revenue growth is expected to remain muted at 2.4% quarter-on-quarter with stable yields.
According to The Financial Express report, strong IPO activity is expected to support CDSL during Q2FY27. Primary-market fundraising reached around ₹92,600 crore during the quarter, nearly 9.8 times the previous quarter. Demat account additions have also picked up significantly, with around 2.5 million accounts added per month on average in July and August, compared with 1.9 million in Q1FY27. CDSL added 2.7 million demat accounts in August alone, its highest monthly addition in FY27 so far. Nuvama stated that the major revenue driver this quarter would be IPO-led revenue. As per the latest market data, CDSL is currently trading at ₹1,254.9 with a market cap of ₹26,405.06 crore and PE ratio of 57.32. The company's strong performance in IPO-related activities continues to support its growth trajectory amid challenging market conditions.
As reported by The Financial Express, BSE's performance is more closely linked to trading activity and regulatory changes. The index option average daily premium turnover (ADPTV) fell 23.9% quarter-on-quarter to ₹22,500 crore during Q2FY27. Nuvama estimates BSE's revenue could rise 34.1% year-on-year but decline 8.5% quarter-on-quarter. Adjusted profit after tax (APAT) is estimated to increase 37.8% year-on-year while falling 13.5% sequentially. The latest market data shows BSE's weight in the BSE 500 Index Fund Direct Growth scheme at 0.29%, indicating continued institutional participation despite volume pressures. The brokerage noted that BSE's fate depends on CAS regulation outcome. As per the latest market data, BSE is currently trading at ₹3,257.7 with a market cap of ₹134,805.69 crore and PE ratio of 50.55.
According to The Financial Express, both CAMS and HDFC AMC appear better placed in Nuvama's comparison from a valuation perspective, trading at relatively lower valuations while continuing to deliver growth despite difficult market conditions. The latest market data reinforces this valuation advantage, with CAMS trading at ₹698 with 38.05 PE ratio and HDFC AMC at ₹2,327.5 with 34.2 PE ratio. Nuvama stated that commentary on total expense ratio changes, specialised investment funds, distributor payouts, new fund launches and inflows shall be keenly watched. For CDSL, strong IPO activity provides support, but valuation remains a consideration, while BSE faces greater uncertainty around trading volumes and regulatory changes. The HDFC AMC's 0.26% weight in the BSE 500 Index Fund Direct Growth scheme demonstrates continued institutional confidence, while CDSL's strong IPO activity and 2.7 million monthly account additions support its growth prospects. As per the latest market data, all three companies maintain attractive valuations with CAMS at 38.05 PE ratio, HDFC AMC at 34.2 PE ratio, and CDSL at 57.32 PE ratio.
