Buy HDFC Asset Management Company, target price Rs 2600: ICICI Direct

ICICI Direct has hold call on HDFC Asset Management Company with a target price of Rs 2600. The current market price of HDFC Asset Management Company is Rs 2179.7.

HDFC Asset Management Company, incorporated in the year 1999, is a Large Cap company (having a market cap of Rs 46218.95 Crore) operating in Financial Services sector.

HDFC Asset Management Company key Products/Revenue Segments include Income From Portfolio Management Services and Investment Management & Advisory Fees for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 648.93 Crore, unchanged from last quarter Total Income Company has reported net profit after tax of Rs 363.85 Crore in latest quarter.

The company’s top management includes Mr.Deepak S Parekh, Mr.Sanjay Bhandarkar, Mr.Parag Shah, Mr.Jairaj Purandare, Mr.Dhruv Kaji, Mr.Rushad Abadan, Ms.Renu S Karnad, Mr.Keki Mistry, Mr.Navneet Munot, Ms.Roshni Nadar Malhotra. Company has B S R & Co. LLP as its auditors. As on 30-06-2022, the company has a total of 21 Crore shares outstanding.

Investment Rationale
Tech investments, business promotion activities, new launches to keep opex elevated in the near term but should reflect in business growth. Likely improvement in market share on the back of healthy scheme performance and superior earnings trajectory makes us positive on the stock. At the CMP, the stock is trading at ~26.7x FY25E EPS.

Promoter/FII Holdings
Promoters held 68.8 per cent stake in the company as of 30-Jun-2022, while FIIs owned 16.51 per cent, DIIs 2.09 per cent.