Highest Ever Dividend of Rs. 70/Share: Buy The HDFC Group Stock To Be Eligible?

The market capitalization of HDFC Asset Management Company Ltd (AMC) was Rs 77,880.03 Cr at the close of business on Monday. HDFC Mutual Fund's (HDFC MF) investment manager is HDFC Asset Management Company Limited (HDFC AMC). The company has released its financial results for the quarter and year that ended on March 31, 2024, but what has let investors closely watch the stock is the Board of Directors' announcement of the highest-ever dividend of Rs 70 per share for FY24.

HDFC AMC Dividend

The Board of Directors of HDFC Asset Management Company Limited at its meeting held on April 19, 2024, recommended a dividend of Rs. 70/- per equity share of Rs. 5/- each of the Company, for the financial year ended March 31, 2024, subject to the approval of shareholders at the ensuing Annual General Meeting. The dividend if approved by the shareholders, will be dispatched / remitted commencing from the day after the ensuing Annual General Meeting, as per a regulatory filing.

HDFC AMC Q4 Results

The net profit for the quarter that ended in March increased by 43.8% to Rs 541 crore for HDFC Asset Management Company (AMC) on Friday, April 19, from Rs 376.2 crore during the same period the previous year. Revenue increased to Rs 695.4 crore from Rs 541 crore in the same quarter of the previous fiscal year, a 28.5% growth.

Compared to the March 2023 quarter, HDFC AMC's total income increased by 33% to Rs 851 crore in the fourth quarter. Regarding the quarter that concluded on March 31, 2024, the corporation recorded a QAAUM market share of 11.3%. As of March 31, 2024, there were 16.6 million active accounts. The number of unique customers, as determined by PAN or PEKRN, as of March 31, 2024, was 9.6 million, representing a 22% share of the market, as opposed to 44.6 million for the industry.

HDFC AMC Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said HDFC Asset Management Company (HDFCAMC) exhibits a consolidative phase, trading within a defined range of 3590 to 3820 levels. This sideways movement indicates a period of equilibrium between buyers and sellers, potentially setting the stage for a breakout in the near future.

Notably, the lower bound of this range at 3590 levels serves as a robust support level, underpinned by historical price action and reinforced by investor sentiment.

Investors with existing positions are advised to employ a trailing stop-loss strategy, safeguarding gains and limiting potential losses, particularly around the key support level of 3590. A breach below this level could signal a shift in market dynamics, warranting a revaluation of investment strategies.
Conversely, a decisive move above the upper boundary resistance at 3820 levels could trigger a bullish breakout, paving the way for further upside potential. In such a scenario, the stock may target higher levels, with an initial target set at 4050.

For investors considering fresh positions, entry at the current market price of 3660 presents an opportunity, with a prudent stop-loss order set at 3590. This approach allows for participation in potential upward movements while managing downside risks effectively. However, it's essential to monitor price action closely for signs of a breakout or reversal, adjusting strategies accordingly.Disclaimer The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.