HDFC Asset Management Company Ltd., incorporated in the year 1999, is a Large Cap company (having a market cap of Rs 61441.55 Crore) operating in Financial Services sector.
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 545.57 Crore, down -8.29 % from last quarter Total Income of Rs 594.91 Crore and up 21.34 % from last year same quarter Total Income of Rs 449.62 Crore. Company reported net profit after tax of Rs 316.08 Crore in latest quarter.
Investment Rationale
Business levers ahead include: 1) Building on performance, which can improve flow share, 2) new product pipeline, and 3) possible industry momentum given the net inflows and increase in SIP witnessed in FY22TD. The brokerage maintains BUY with a target price of Rs3,284 (unchanged) based on FY23E core EPS of Rs66.4 plus cash and investments of Rs296 /share, which takes into account 16% AAUM CAGR between FY21-23E along with drop in yields (3bps between FY21-23) and rise in operating costs (Rs4.6bn in FY23E compared to Rs3.9bn in FY21). This will maintain operating profits at ~38bps of AAUM for FY21-23E.
Promoter/FII Holdings
Promoters held 73.9 per cent stake in the company as of March 31, 2021, while FIIs held 9.5 per cent, DIIs 5.8 per cent and public and other 10.8 per cent.
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