All-Time High Dividend of Rs 70: Record Date On 18th June; Buy HDFC Bank-Backed Stock?

One of the recognised mutual fund managers in India is HDFC Asset Management Company Limited (HDFC AMC). As of March 31, 2024, it had a large network of 254 branches, 85k+ distribution partners, and 99% of pin codes covered in India. As of the same date, it had 9.6 mm customers and 16.6 mm active accounts. HDFC Bank is its promoter shareholder, holding a 52.55% stake in HDFC AMC. With a record date of June 18, 2024, HDFC AMC has announced the highest-ever dividend payout of Rs. 70 for FY24.

HDFC AMC Dividend

"25th Annual General Meeting (AGM) of the members of the Company to be held on Thursday, July 25, 2024. Since, the AGM of the Company will be held on the aforesaid date and the Company for the last two financial years has been paying dividend to its shareholders in the month of June, the Board has, accordingly, approved declaration of Interim Dividend of Rs. 70/- per equity share of Rs. 5/- each of the Company, for the financial year ended March 31, 2024, instead of the final dividend as proposed earlier. Further, as already intimated, the Record Date for the purpose of ascertaining the entitlement of the shareholders to the interim dividend, as declared by the Board of Directors, shall be Tuesday, June 18, 2024 and dividend will be paid on or before June 30, 2024," said HDFC AMC in a stock exchange filing.

HDFC AMC FY24 Key highlights

With a net profit of Rs 19,458 million at the end of the financial year on March 31, 2024, HDFC AMC reported a 37% growth from FY23. For the fiscal year that ended on March 31, 2024, revenue from operations was Rs 25,844 million, and operating profit was Rs 19,000 million. These figures represented growth of 19% and 22%, respectively, over the fiscal year that ended on March 31, 2023. HDFC AMC became among the largest mutual fund managers in India, with an 11.3% QAAUM market share for the quarter that ended on March 31, 2024.

Compared to Rs 3,948 million for the quarter ended March 31, 2023, the operating profit of HDFC AMC for the quarter ended March 31, 2024 was Rs 5,236 million. Compared to Rs 3,761 million for the quarter ended March 31, 2023, profit after tax for the quarter ended March 31, 2024 was Rs 5,411 million.

HDFC AMC Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "HDFCAMC, currently trading at 4004 levels, is showing signs of a positive technical outlook. The stock has recently rebounded from the support levels around 3790 which is also close to 50 Day EMA levels, demonstrating its ability to maintain price stability. Notably, the stock has a minor resistance level at 4188, which is in proximity to previous all time high levels. If the stock manages to sustain a position above this mentioned resistance, it may pave the way for an upward movement towards the target level of 4400 and beyond. This is a positive development, as it signifies a potential change in the stock's trend."

"The Relative Strength Index (RSI), a momentum indicator, is currently trading at 56.30 levels. This RSI reading suggests a moderate level of strength in the stock, without being in overbought territory. It implies that there is room for the stock to potentially gather further momentum. The overall trend for HDFCAMC is sideways to Bullish, supported by various technical indicators, reinforcing the optimistic outlook. Given these signals, there is a possibility for the stock to achieve a target price of Rs 4400 in the near term. It is advisable to consider buying on dips, particularly around Rs 3900, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 3790 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal," the analyst further stated.

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.