Hold HDFC AMC; target of Rs 2500: ICICI Direct
ICICI Direct recommended hold rating on HDFC AMC with a target price of Rs 2500 in its research report dated October 23, 2020.
October 25, 2020 / 12:02 PM IST
ICICI Direct's research report on HDFC AMC
HDFC AMC reported a mixed performance wherein muted operational performance was supported by one-off other income. AUM growth remained weak with a decline in market share. Industry AUM increased to Rs 26.9 lakh crore as of September 2020 compared to Rs 24.5 lakh crore as of September 2019, largely led by a pick-up in non-equity inflows. Equity related AUM remained broadly flattish YoY at Rs 10.4 lakh crore, leading to a decline in proportion of equity AUM to 39% against 43% in Q2FY20. SIP inflows dipped 6% YoY to Rs 7800 crore though SIP accounts came in a tad higher by 17.2% YoY to 3.3 crore.
Therefore, we downgrade the stock from BUY to HOLD with a revised target price of Rs 2500 per share (earlier Rs 3000).
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