ICICI Direct has given Hold recommendation for HDFC AMC with a target price of Rs. 3150 in its research report issued on Jul 12, 2021
ICICI Direct’s research report on HDFC AMC
HDFC AMC is among the largest and profitable mutual funds with a AUM of Rs 4.18 lakh crore as on June 2021. • Market share as on Q1FY22 was at 12.4%. Strong distribution network with 227 branches and over 70,000 empanelled distribution partners. Q1FY22 Results: HDFC AMC reported a soft quarter. • AUM up 17% YoY, 5.9% QoQ to Rs 4.18 lakh crore, equity AUM up 9% QoQ • Revenue from operations flat QoQ at Rs 507 crore; yields down 3 bps QoQ • PAT up 9% QoQ (14.3% YoY) to Rs 345 crore, primarily led by higher one-off other income at Rs 101 crore.
Outlook
We value HDFC AMC at ~43x FY23 EPS to arrive at a target price of Rs 3150 per share.