KR Choksey's research report on HDFC Asset Management Co
AUM degrew 3.2% YoY/ 0.9% QoQ to INR 3,54,400 Cr – losing market share by 80 bps to 13.2%. It is on account of loss of share in equity AUM as it gained in debt. The no. of accounts fell 2% YoY to 9.21 million. Its unique investors were at 5.5 million down by 1 million sequentially (steady share). PAT grew 12% QoQ on better yields (Revenues grew 10.9% QoQ ) and other incomes (16.1%. QoQ/122.6% YoY ) despite high opex. PAT of last year includes a one-time tax cost. Ex the same, PAT would have grown 1% YoY.
We expect the premium valuation to continue owing to its parentage, and higher operational efficiency. We maintain our valuation of 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 31%. We reiterate our rating to a “BUY”.
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