InvestorQ : Why were the Reliance AMC results so bad in this June quarter? Is the stock worth buying at current prices?
Anu Biswas made post

Why were the Reliance AMC results so bad in this June quarter? Is the stock worth buying at current prices?

Answer
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Priyanka N answered.
1 year ago


For the June quarter, the net sales of Reliance Nippon AMC was down by 18.5% at Rs.308 crore. This largely on the back of lower management fees considering a reduction in the AUM of the AMC. If you look at it in terms of P/E, the stock is more than 30 times which is quite steep. Also, the management fees for AMCs are continuously falling due to pressure from SEBI on the cost front. The big concern for you could be that the stock has rallied nearly 65% in the last six months and that may not leave much of margin of safety on the stock. It is better avoided at current prices.