Accumulate HDFC Asset Management Co; target of Rs 1970: KR Choksey

KR Choksey recommended accumulate rating on HDFC Asset Management Co with a target price of Rs 1970 in its research report dated April 27, 2023.

Broker Research

April 27, 2023 / 14:51 IST

accumulate

live

bselive
nselive

Volume

Todays L/H

KR Choksey's research report on HDFC Asset Management Co

QAAUM (Quarterly Average Assets Under Management) was at INR 4,498 Bn as of March 31, 2023, a growth of 4.1% YoY/ 0.4% QoQ. The market share in QAAUM stood at 11.1% of the mutual fund industry in this quarter, as against 11.0% in Q3FY23. In Q4FY23, revenue growth stood at INR 5,410 Mn, a growth of 4.8% YoY, but fell on a sequential basis by 3.3%. Revenues for the full FY23 grew by 2.4% YoY to INR 21,668 Mn. The EBITDA during Q4FY23 was reported at INR 4,106 Mn (excluding other income), which grew by 4.3% YoY with margins at 75.9%. For the full year FY23, the EBITDA stood at INR 16,179 Mn, a growth of 1.1% YoY. Net profit for Q4FY23 grew by 9.5% YoY/ 1.8% QoQ at INR 3,762 Mn, while for FY23 PAT grew by 2.2% at INR 14,239 Mn.

Outlook

HDFCAMC shares are currently trading at a P/E of 24.5x/22.8x on FY24E/FY25E earnings. We are applying a P/E multiple of 25.5x on FY25E EPS of INR 77.2 to arrive at a target price of INR 1,970 per share (earlier INR 2,202), an upside of 13.3% over the CMP. We maintain our rating of “ACCUMULATE” on the shares of HDFC AMC.

For all recommendations report, click here