Shares Of This Large Cap Financial Stock Set To Rally, Top Brokerage Recommends Buy

Leading brokerage firm Bonanza has recommended investors to buy HDFC Asset Management Company Ltd with a target price of Rs 2600 apiece. The current market price of the stock is Rs 2227 apiece. If you buy HDFC Asset Management Company Ltd shares now, you can get potential 17% return.

HDFC AMC's plan to launch a thematic and business cycle fund in November 2022 and looking to develop new products in FY23 launches NFOs, new ETFs, and steady SIP momentum to support AUM growth going forward. Check key details below:

HDFC Asset Management Company Stock Performance & Return

The last trading price of the stock is Rs 2227 apiece with an intraday decline of 2%. The stock's 52-week high is Rs 2535 apiece and 52-week low is Rs 1690 apiece, respectively. The stock has given return of 14% in last 3-months, 8% in last 1-month, and 23% in last 5-years. In last 1-year, the shares have fallen 4% and 31% in last 3-years.

2. Outlook

HDFC AMC is well situated over the longer term, benefitted from a market leader within peer group, and maintained the highest profitable during the past 10 years, net PAT of HDFC AMC grew at a CAGR of 17.9% which is the highest in the peer group, strong corporate governance, brand equity, pan-India distribution network and steady flow of SIP flows, aggressively looking to launch a new product with a different strategy of diversification along with expenses control is likely to support the growth going ahead.

Moreover, a concern of market share attrition is likely to be addressed by its strong center of attention on recapturing market share.

3. Investment Argument

Industry AUM grew at a pace of 8% YoY, increasing from ₹ 36.2 Lakh Cr to ₹ 39.1 Lakh Cr YoY and ₹ 37.7 Lakh Cr QoQ. The equity composition mix in AUM was up 21.2% YoY and 8% QoQ to ₹ 18.9 Lakh Cr.

HDFC AMC has witnessed a decline in market share in the last few quarters, on a sequential basis the market share remained stable at 11% within equity and non-equity-oriented schemes market shares are stable. SIP flows witnessed an increase in market share by 60bps at 11% in September 2022.

4. Valuation

According to the analyst, "Based on the above technical structure one can initiate a long position in HDFC AMC at CMP 2290 this can be used as buying opportunity for the upside target of 2,600. However, the bullish view will be negated if the price closes below the support level of 2,100."

5. About HDFC Asset Management Company

HDFC Asset Management Company (HDFC AMC) is Promoted by HDFC Ltd and Standard Life, it was incorporated under the Companies Act, 1956, on 10th December 1999 and was approved to act as an Asset Management Company for HDFC Mutual Fund by SEBI on 3rd July 2000. It has other SEBI licenses viz. PMS / AIF. HDFC AMC has a diversified asset class mix across Equity and Fixed Income/Others.

Disclaimer

The stock has been picked from the brokerage report of Bonanza. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.