In Motilal’s case it’s not true. While AMC business tends to be cyclical, linked to market cycles, wealth management business is a lot more secular. MFS’s revenue mix is more concentrated towards wealth management and that’s why stock is getting rerated.
Stock is still trading below 10 year historical averages so I don’t see any concerns for valuation, especially in the light of their increasing focus on wealth management which commands higher valuations than an AMC business.
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