Here is the 1 min Version Of this Stock Review to save your time.
- HDFC AMC was incorporated in the year 1999.
- HDFC is the major promotor here.
- Standard Life Investments is second major promotor.
- Standard Life Investments Limited is a U.K based company that provides investment and asset management services. The Company manages equities, bonds, real estate property, private equity, and cash.
Management of HDFC AMC
- Mr. Deepak Parekh is the chairman of HDFC AMC.
- Mr. Parekh is the man behind HDFC and HDFC Bank.
- HDFC bank is the largest Pvt Bank in India.
- So HDFC AMC is in Safe Hands in regards to Management.
Business Model of HDFC AMC
- In any Asset Management Company Investors pool their money in Various Schemes
- Each Fund has A Fund Manager.
- AMC charge a fee called expense ratio on the initial amount of investment and it is still charged even when you make a loss.
- There are very less overhead costs, no factories, no machines just a bunh of skillful employees and a Robust IT infrastructure is needed.
- Good Fund Managers are Also Needed.
- HDFC AMC Currently has 24 Equity Oriented Schemes, 68 Debt Oriented Schemes, 02 Liquid Fund Schemes & 07 Other Schemes.
- HDFC AMC has the highest Asset under management i.e 3.96 Lac Crores.
- AUM (Asset Under Management) is the total value of money that is managed by the AMC.
Financials of HDFC AMC
- Revenue has been on an increase except the pandemic year.
- Profit After Tax has a cagr 22.64%.
- HDFC AMC beating the index by almost 10% in last five years.
- Net Profit Margin is the profit after all the taxes deducted.
- Net profit Margins are also on rise from the past five years.
- Here we can notice the profit margins for the mutual fund industry are way higher than any other industry.
- Holdings of promoters have been stable over the past 5 years.
- This shows Promoters have belief in their own Company.
Technical Analysis of HDFC AMC
- Stock’s Current support levels are near 2775–2800
- There is a high probability of stock bouncing from the current levels.
- This Stock Should be Bought at everydip, Such is the Capability of this AMC.
Also, the Mutual fund industry is on the rise and will only rise from its current situation so there would be more people investing in mutual funds which will also increase the HDFC AMC’s Share in the market.
Mutual contribution is still low at 12% which is very low, In comparison to the US which is having 44% of mutual contribution to GDP. Even Emerging Markets like Brazil accounts for 59% contribution to GDP from MF’s.
However, India’s MF’s Industry is a 25 trillion rupees economy which is a 333 Billion US dollar industry and according to me has great potential as the financial literacy grows in Indian households Asset management companies will definitely grow.
This is for educational purposes only. Please consult your financial advisor before investing.