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Why HDFC AMC is going Down?

There are reasons for that
  1. Algorithm-based trading platforms are coming to market. and they don’t need AMC companies.
  2. Passive investing based platforms like index funds, ETFs are coming to market by discount brokers like Zerodha
  3. More companies are entering the market so huge competition will be there.
  4. In the future, there will be huge pressure on margins so the market is not liking and not confident.
  5. Most of the equity funds from HDFC AMC are not doing well and management seems unconcerned. Unitholders are quitting as fund managers lack the skills to outperform the index.
  6. At 3100 prices its PE is 50 (to be noted it's not small-cap , it's Large-cap), which is mostly given to high growth (top line) + high profit margin (bottom line) stocks. now market doesn't have confidence in the high margin in future. so it's getting discounted