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Buy HDFC AMC; target of Rs 3020: KRChoksey

KRChoksey is bullish on HDFC AMC has recommended buy rating on the stock with a target price of Rs 3020 in its research report dated July 24, 2020.

July 26, 2020 / 12:56 PM IST
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KRChoksey's research report on HDFC AMC

HDFC AMC reported revenue decline of 18.4% YoY/down 13.6% QoQ to INR 411 Cr. • EBIT declined by 15.5% QoQ / 21.1% YoY to INR 303 Cr. PAT improved 21.0% QoQ / 3.6% YoY to INR 302 Cr due to higher other income. PAT margin expanded from 52.5% in Q4 FY20 to 73.5% in Q1FY21. • AUM improved 12.0% QoQ to INR 3,57,500 Cr. out of which 39% are equity oriented and 61% are non-equity oriented (Industry ratio stood at 38:62). Market share of total AUM declined to 14.0% in Q1FY21 from 14.7% in Q1FY20 • Unique investors stood at 5.6 million comprising of ~26% share in the total MF industry • During Q1FY21, there were 3.11 mn Systematic transactions with a value of INR 9.6 bn processed.


HDFC AMC shares are currently trading at a P/E of 41.0x/36.8x on FY21/22E. We expect the premium valuation of the AMC to continue owing to its higher operational efficiency and industry leading AUM metrics. We continue to apply a P/E of 43x on FY22E EPS of INR 70.2 to arrive at a target price of INR 3,020 an upside of 22.6% over the CMP. Accordingly, we reiterate our rating to a “BUY” on the shares of HDFC AMC.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 26, 2020 12:56 pm

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