Q4FY21 Result Update - HDFC AMC - ICICI Direct

HDFC AMC reported a steady operational performance though lower than expected AUM growth and continued loss in market share remain a concern. Industry AUM increased from Rs. 31 lakh crore as of Q3FY21 to Rs. 31.4 lakh crore as of Q4FY21, largely led by pick up in equity markets and offset by outflow in debt segment. Equity related AUM increased 6.5% QoQ at Rs. 13 lakh crore, proportion of equity AUM were at 41% vs. 39% QoQ. Debt schemes witnessed outflow thereby declining ~4% QoQ. SIP inflows increased sequentially from Rs. 8400 crore to Rs. 9200 crore.

Valuation & Outlook

Post moderation in SIP flows and outflow from equity schemes in major part of FY21, the industry witnessed a revival in March 2021. HDFC AMC has followed suit but continued decline in market share remains a concern. Aiming at accelerating AUM growth and gaining market share, slew of products launches (thematic funds) are underway, though outcome of steps undertaken to shore up AUM needs to be closely watched. Overall, we continue to remain positive on the strong brand franchise and efficient operational strength shown in FY21. Therefore, we maintain our HOLD rating on the stock with an unchanged target price of Rs. 3000/share.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_HDFCAMC_Q4FY21.pdf

Shares of HDFC Asset Management Company Ltd was last trading in BSE at Rs.2863.15 as compared to the previous close of Rs. 2830.9. The total number of shares traded during the day was 21070 in over 1140 trades.

The stock hit an intraday high of Rs. 2880 and intraday low of 2832. The net turnover during the day was Rs. 60457324.

Source : Equity Bulls

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