Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
IPO News

| More

HDFC Asset Management Co - IPO Note - Angel Broking

Posted On: 2018-07-24 22:31:22

HDFC Asset Management Co (HDFC AMC) is the asset management arm of the HDFC Ltd (Promoter) and was established in 1999. In 2001, Standard Life Investments acquired 26% stake in HDFC AMC. It is the most profitable AMC and the second largest in terms of asset under management (AUM) with ~14% market share. As on March 2018, it managed AUM of Rs. 2,91,985cr out of which 51% was equity AUM. It has grown its AUM at a CAGR of 25.5% over FY2013-18.

Huge potential for growth (Industry) in Mutual Fund AUM: In the past five years (FY14-FY18), equity AUM for Indian MF industry has increased 4.4x, from Rs. 2 lakh cr to Rs. 9 lakh cr. Further, overall AUM has nearly jumped 2.5x from Rs. 8.2 lakh cr to Rs. 21.3 lakh cr. Moreover, the MF industry is receiving about Rs. 7,000cr per month through SIP (Systematic Investment Plan). We believe that this trend would continue in the coming years owing to (1) continuation of black money crack down; (2) lower fixed deposit rates; (3) increased awareness; (4) low penetration (AUM/GDP -13% vs. +50% in developed markets).

Most profitable AMC among top 5 AMCs: HDFC AMC has been reporting the best profitability numbers in the industry owing to operating efficiency. For FY18, HDFC AMC had reported PAT/AAUM of 0.26%, whereas other top 5 players had reported the same in the range of 0.21-0.14%.

Healthy financials to support higher dividend payout: Revenue/EBITDA has grown at healthy CAGR of 20% over FY2013-17. Return on equity (ROE) for FY2018 was 40% and last 5 years average ROE was 42%. For FY2018, HDFC AMC registered dividend payout of 47%, notably the company has been maintaining dividend payout of 41% on an average for last 5 years.

Outlook & Valuation: At the upper end of the IPO price band, it is offered at 32x its FY2018 EPS and 11x its FY2018 book value, demanding Rs. 23,318cr market cap, which is 7.6% of the MF AUM (Rs. 3,06,841cr for the month of June 2018). Considering that HDFC AMC is the second largest AMC coupled with huge potential of MF industry growth, strong return ratios, asset light business, higher dividend payout ratio and track record of superior investment performance, we are positive on this IPO and rate it as SUBSCRIBE.

Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.1980 as compared to the previous close of Rs. 1966.6. The total number of shares traded during the day was 29589 in over 1649 trades.

The stock hit an intraday high of Rs. 1984.05 and intraday low of 1965. The net turnover during the day was Rs. 58470213.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Alpahlogic Techsys IPO oversubscribed 1.18 times on the final day of bidding

Alphalogic Techsys IPO receives overwhelming response, oversubscribed on second day of bidding

Start-up IPO Alpahlogic Techsys subscribed 64% On the First day of bidding

India's First Start-up IPO Opens today

Alphalogic Techsys IPO now to open in Aug 26th, 2019

Alphalogic Techsys Limited IPO to open on August 23, 2019

Alphalogic Techsys Limited to be the First Company to be Listed on BSE Startup Platform

Ujjivan Small Finance Bank Ltd files DRHP with SEBI for IPO

Global solar EPC major Sterling and Wilson Solar's Rs 3,125 cr IPO opens on August 6, 2019

Tamil Nadu - based Annai Infra Developers Ltd. gets SEBI approval to float IPO

Maharashtra Finance Minister Unveils DRHP of Alphalogic Techsys Limited for Rolling Out its IPO

K.P.R. Agrochem IPO withdrawn: Angel Broking

Shyam Steel Industries Limited files DRHP for IPO

White Organic Retail Ltd IPO opens on BSE SME platform

TN-based Annai Infra Developers Limited files document for IPO float

Rail Vikas Nigam Limited's IPO to open on Friday, March 29, 2019

Humming Bird Education IPO fully subscribed

Humming Bird Education IPO Opens on March 15

MSTC Limited's IPO to open on Wednesday, March 13, 2019

Anmol India Ltd IPO fully subscribed on Day 3

KPI Global Infrastructure's Rs. 40 crore mops subscription of Rs. 436 Crore

Initial Public Offer: Garden Reach Shipbuilders & Engineers - Kotak

Initial Public Offer: Dinesh Engineers Ltd - Kotak

Subscription for Kritika Wires Ltd IPO open

Garden Reach Shipbuilders & Engineers Ltd IPO extended, price band revised

IPO of Spectrum Electrical Industries Limited Opens on September 17, 2018

Ahlada Engineers IPO opens for subscription on Sep 11, 2018

Rajshree Polypack Ltd NSE SME IPO to open for subscription on Sep 10, 2018

Marquee investor, Sunil Singhania's Abakkus Growth Fund - 1 invests in Rajshree Polypack Limited as Anchor Investor

Equity shares of CreditAccess Grameen Limited to list on Aug 23, 2018

TCNS Clothing Company Ltd to list on July 30, 2018

HDFC AMC IPO receives subscription of 83.04 times

TCNS Clothing Company Limited - IPO Note - Angel Broking

Rajnish Wellness Ltd IPO to hit markets on June 25, 2018

Varroc Engineering Limited IPO to open for subscription on June 26, 2018

RITES Limited IPO receives overwhelming response from investors

Fine Organic Industries Limited IPO receives subscription of 8.99 times

Varroc Engineering Ltd - IPO Note - Angel Broking

RITES Ltd - IPO Note - Angel Broking

Fine Organic Industries Ltd - IPO Note - Angel Broking

Avana Logistek Ltd files DRHP with SEBI for IPO

IndoStar Capital Finance Ltd - IPO Note - Angel Broking

IndoStar Capital Finance Limited Offer opens on May 9, 2018

IPO Note - SoftTech Engineers Ltd - Arihant Capital Markets Ltd

Hindustan Aeronautics Ltd to list on March 28, 2018

Expectations high on listing of Bandhan Bank shares tomorrow

Mishra Dhatu Nigam Limited IPO receives subscription of 1.21 times

Lemon Tree Hotels Limited - IPO Note - Angel Broking

Mishra Dhatu Nigam Ltd - IPO Note - Sushil Finance

ICICI Securities Ltd - IPO Note - Sushil Finance

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019