4 HDFCAMC share price target reports by brokerages below. See what is analyst's view on HDFCAMC share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Migration to financial savings, strong distribution and a consistent performance are expected to enable healthy AUM growth and maintain leadership. Strong operating efficiency, higher proportion of equity AUM & strong SIP flows would aid profitability. With benefits of lower corporate tax rate kicking in, we revise our PAT estimates up by 10%, 9% for FY20E, FY21E, respectively. Given HDFC AMC’s strong positioning & superior earnings profile, the business deserves a premium valuation. However, a recent price spike appears to factor in all positives. Factoring in tax cut benefits, we revise our T higher to | 3040 (earlier | 2800). Maintain HOLD.
HDFC Asset Management Company Limited (HDFC AMC) reported its 2QFY20 results with the key pointers being: (1) AUM growth remains strong but higher share of liquid funds led to subdued revenue growth (2) PAT growth of 79% was supported by higher other income and lower effective tax rate. (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key financials, HDFC AMC posted MF AUM growth of 25% YoY at Rs3,662bn, net revenue growth of 3.7% YoY at Rs4,980mn, EBITDA growth of 46.5% at Rs3,889mn and PAT growth of 78.8% YoY at Rs3,682mn. We have revised our estimates for FY20/FY21/FY22 and retained Accumulate rating on HDFC AMC, revising our target price to Rs3166 (from Rs3047 earlier), valuing the stock at 40x H1FY22E P/E.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
DISCLAIMER: Information is provided "as is" and solely for informational purposes, not for trading purposes or advice, and may be delayed. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and FrontPage will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein.