HDFC Asset Management Company Ltd - Stock Valuation and Financial Performance

BSE: 541729 | NSE: HDFCAMC | Finance - Asset Management | Mid Cap

HDFC Asset Mngt. Co Share Price

3,677.30 -27.45 -0.74%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on HDFC Asset Mngt. Co

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

HDFC Asset Management Company stock performance -

mw4me loader
P/E Ratio (SA):
44.08
Market Cap:
78,504.5 Cr.
52-wk low:
1,728.3
52-wk high:
4,066.1

Is HDFC Asset Management Company Ltd an attractive stock to invest in?

1. Is HDFC Asset Management Company Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that HDFC Asset Management Company Ltd is a good quality company.

2. Is HDFC Asset Management Company Ltd undervalued or overvalued?

The key valuation ratios of HDFC Asset Management Company Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is HDFC Asset Management Company Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of HDFC Asset Management Company Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of HDFC Asset Mngt. Co:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
HDFC Asset Management Company Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 44.6%41.1%42.1%42.9%38.7%36%35.8%30.3%27.2%24.6%-
Value Creation
Index
3.02.72.72.82.42.22.21.71.41.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8591,0221,4431,4801,7571,9152,0031,8532,1152,1672,430
Sales YoY Gr.-19.1%41.1%2.6%18.7%9%4.6%-7.5%14.2%2.4%-
Adj EPS 17.720.623.727.433.845.159.462.365.366.783.4
YoY Gr.-16.1%15.4%15.4%23.3%33.5%31.8%4.8%4.9%2.1%-
BVPS (₹) 44.655.557.270.7106.6144189223.7255.9281305.2
Adj Net
Profit
3584164785517119591,2651,3261,3931,4241,781
Cash Flow from Ops. 20994.87424556188941,2851,0851,2541,149-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.8%4.3%2.7%2.4%
Adj EPS 15.9%14.6%3.9%2.1%
BVPS22.7%21.4%14.1%9.8%
Share Price - 18.4% 8.6% 105.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
44.641.142.142.938.73635.630.12724.528.5
Op. Profit
Mgn %
56.757.846.347.754.365.178.77975.674.775.4
Net Profit
Mgn %
41.740.633.137.340.550.163.171.665.965.773.3
Debt to
Equity
0000000000-
Working Cap
Days
23717012788725634333039480
Cash Conv.
Cycle
-103-110-64-57-41-31-32-22-8-2463

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 28.50%

Sales growth is good in last 4 quarters at 13.24%

Sales growth has been subdued in last 3 years 2.65%

Net Profit has been subdued in last 3 years 3.93%

Latest Financials - HDFC Asset Management Company Ltd.

Standalone Consolidated
TTM EPS (₹) 83.4 83.3
TTM Sales (₹ Cr.) 2,430 2,430
BVPS (₹.) 305.2 305
Reserves (₹ Cr.) 6,408 6,404
P/BV 12.05 12.06
PE 44.08 44.15
From the Market
52 Week Low / High (₹) 1728.30 / 4066.10
All Time Low / High (₹) 1248.30 / 4066.10
Market Cap (₹ Cr.) 78,504
Equity (₹ Cr.) 106.7
Face Value (₹) 5
Industry PE 35.1

Management X-Ray of HDFC Asset Mngt. Co:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of HDFC Asset Mngt. Co

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income9031,0641,4941,5881,8702,0972,1432,2022,4332,483
Interest Income8591,0221,4431,4801,7571,9152,0031,8532,1152,167
Other Income 454252108113182140349318316
Expenditure 381442786788812722490453578612
Interest Expense 00000099910
Operating Expenses 376428761764745643437407516548
Provisions 5132524667944375354
Exceptional Items 0000000000
Profit Before Tax 5226237088001,0581,3751,6531,7491,8551,871
Taxes 165207230250347444391423462447
Profit After Tax 3584164785507119311,2621,3261,3931,424
Adjusted EPS (₹)17.720.623.727.333.843.859.362.365.366.7
Dividend Payout Ratio (%)35%39%42%42%47%55%47%55%64%72%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital9011,1201,1511,4232,2543,0714,0294,7765,5306,108
Share Capital 25252525105106106106107107
Reserves 8761,0951,1261,3982,1492,9643,9234,6705,4236,002
Minority Interest0000000000
Long Term Borrowings221-954-14128173209
Current Liabilities 205177256176213149272191178219
Trade Payables14895172961124747262936
Short term borrowings0000000000
Other Liabilities-148-95-172-96-112-47-47-26-29-36
Total Liabilities 1,1091,2981,4091,5902,4723,2244,2875,0955,8806,537

Assets

Non Current Asset 278371289271707678818794812800
Loan Asset 0000000000
Other Non Current Asset 278371289271707678818794812800
Current Asset 8309281,1191,3191,7652,5463,4694,3005,0685,737
Current Investment6064898261,0681,4322,3513,3344,1584,9395,477
Other Current Asset224439293251334195134142130260
Total Assets 1,1091,2981,4091,5902,4723,2244,2875,0955,8806,537

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 209957424556188941,2851,0851,2541,149
Cash Flow From Investing Activity -51104-297-176-633-777-928-483-508-218
Cash Flow From Financing Activity -159-197-447-27915-119-332-628-746-930
Net Cash Flow 02-201-126-2501
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)142165190219344459626567
DPS (₹)50658092162428344248
BVPS (₹)357444457565107144189224256281

Performance Ratios

ROA (%)27.934.535.336.735.032.733.628.325.422.9
ROE (%)44.641.142.142.838.835.135.630.227.324.9
ROCE (%)65.261.662.462.157.651.646.839.936.232.3

Valuation Parameters

Price/Book(x)0.00.00.00.00.010.711.213.18.46.1

HDFC Asset Management Company Ltd Stock News

HDFC Asset Management Company Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HDFC Asset Mngt. Co on 12-Apr-2024 16:59 is ₹3,677.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of HDFC Asset Mngt. Co stood at ₹78,504.5.
The latest P/E ratio of HDFC Asset Mngt. Co as of 12-Apr-2024 16:59 is 44.08.
The latest P/B ratio of HDFC Asset Mngt. Co as of 12-Apr-2024 16:59 is 12.05.
The 52-week high of HDFC Asset Mngt. Co is ₹4,066.1 and the 52-week low is ₹1,728.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HDFC Asset Mngt. Co is ₹2,430 ( Cr.) .

About HDFC Asset Management Company Ltd

HDFC Asset Management Company Ltd. (HDFC AMC) is the investment manager to the schemes of HDFC Mutual Fund (HDFC MF). It is India’s most profitable mutual fund manager, leading in actively managed equity-oriented assets under management (AUM). Started in 1999, it was set up as a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited (SLI). During FY18-19 it carried out an initial public offering, and became a publicly listed company in August 2018. It offers a comprehensive suite of savings and investment products across asset classes, which provide income and wealth creation opportunities to its large retail and institutional customer. It has a dominant position in equity investments, with the highest market share in actively managed equity-oriented funds.

Its strengths lie in delivering simple and accessible investment products for the average Indian household. It is the most preferred choice for retail investors, with the highest market share in assets from individual investors. Over one in four Indian mutual fund investors have invested in at least one of its schemes. Its offering of systematic transactions further enhances its appeal to individual customers looking to invest periodically in a disciplined and risk-mitigating manner. Its schemes have weathered multiple market cycles. It works with diverse sets of distribution partners which helps company expand its reach. It has several empanelled distributors which include independent financial advisors, national distributors and banks. It serves its customers and distribution partners in many cities through its network of branches and employees.

Business area of the company

The company offers a large suite of savings and investment products across asset classes, which provide income and wealth creation opportunities to its customers. It also provides portfolio management and segregated account services, including discretionary, non-discretionary and advisory services, to high net worth individuals (HNIs), family offices, domestic corporates, trusts, provident funds and domestic and global institutions.

Products of the company

  • Diversified Equity
  • Thematic Equity
  • Equity Linked Savings Scheme (ELSS)
  • Hybrid
  • Solution Oriented
  • Theme Based Debt
  • Duration Based Debt
  • Index/ETF
  • Gold ETF/FOF

Certifications, awards and accreditations

  • 2012: HDFC Mutual Fund won the Morningstar India Fund Awards 2012 in the ‘Best Fund House - Equity’ category and the ‘Best Fund House - Multi Asset’ category.
  • 2012: HDFC Children’s Gift Fund-Investment Plan won the Lipper Fund Awards 2012 in the ‘Mixed Asset INR Balanced - 3 Years’ category.
  • 2013: HDFC Balanced Fund - Growth won the Thomson Reuters Lipper Fund Awards 2013 in the ‘Mixed Asset INR Aggressive - Best Fund over 10 Years’ category.
  • 2013: HDFC Mutual Fund won the Morningstar India Fund Awards 2013 in the ‘Best Fund House - Equity’ category and the ‘Best Fund House - Multi Asset’ category.
  • 2014: HDFC Balanced Fund won the Morningstar India Fund Awards 2014 in the ‘Best Moderate Allocation Fund’ category.
  • 2014: HDFC Multiple Yield Fund - Plan 2005 won the Morningstar India Fund Awards 2015 in the ‘Best Conservative Allocation Fund’ category.
  • 2017: HDFC Balanced Fund - Growth won the 2017 Thomson Reuters Lipper Fund Award in the Mixed Asset INR Balanced - ‘3, 5 & 10 Years’ categories.
  • 2017: The company won the Outlook Money Awards 2017 in the ‘Equity Fund House’ category.
  • 2018: HDFC Small Cap Fund advertisement won a Gold award in the ‘Banking and Finance’ category at Magzimise Awards.

Major events and milestones

  • December 1999: The company was incorporated.
  • July 2000: The company received SEBI’s approval to manage HDFC Mutual Fund Schemes.
  • September 2000: The company reached an AUM of Rs 6.5 billion.
  • August 2001: Standard Life Investments became company’s shareholder.
  • September 2002: The company’s AUM crossed Rs 100 billion.
  • June 2003: The company acquired Zurich Asset Management Company (ZAMC), having an AUM of Rs 34 billion, pursuant to which company achieved a combined AUM of Rs 118 billion.
  • January 2009: The company’s AUM crossed Rs 500 billion.
  • October 2009: The company’s AUM crossed Rs 1 trillion.
  • March 2011: HDFC Debt Fund for Cancer Cure, company’s first CSR oriented fund launched in India.
  • March 2014: HDFC Debt Fund for Cancer Cure 2014, company’s second CSR oriented fund launched in India.
  • June 2014: The company acquired Morgan Stanley Mutual Fund schemes, having an AUM of Rs 19 billion.
  • September 2014: The company’s AUM crossed Rs 1.5 trillion.
  • May 2016: the company’s AUM crossed Rs 2 trillion.
  • April 2017: HDFC Charity Fund for Cancer Cure, its third CSR oriented fund launched in India.
  • April 2017: The company’s Equity AUM crossed Rs 1 trillion
  • December 2017: The company’s AUM crossed Rs 3 trillion.
  • 2019: HDFC Asset Management Company has unveiled a 360-degree digital campaign ‘Kya Plan Hai’.
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