INSUBCONTINENT EXCLUSIVE:
Portfolio managers believe despite premium valuations and the run-up in price, investors could accumulate shares of HDFC Asset Management
Analysts said with higher sustainable operating profits the stock could be re-rated
The stock moved up 9 per cent to Rs 2,170 in the last couple of trading sessions, after the quarterly numbers, where profits grew 42 per
He recommends investors accumulate the stock for the long term.
The asset manager continued to retain its number one position and market
share (from 13.2 per cent to 14.7 per cent) in overall assets under management and maintained its market share in the more profitable equity
It gained share in the liquid fund category, a preferred choice for many corporate investors who fled to safety in the aftermath of the
IL-FS crisis.
Phasing out of upfront commissions, which are now replaced with trail commissions, and lower employee expenses during the
manager saw operating profit margin increase in the quarter from 37 basis points to 42 points and this looks sustainable, which is a big
He advises investors to accumulate the stock.
In a note to investors, JM Financial raised its earnings estimates by 12 per cent / 13 per
cent for the next couple of years on account of building a higher operating profitability of 41bps in FY20E / FY21E compared to 37 basis
It has a revised target price to ?2,200.