HDFC AMC hits highest level since listing; rises 12% in one week

HDFC AMC hits highest level since listing; rises 12% in one week on Business Standard. The stock rallied 4.6% to Rs 1,916, extending its 7% gain in the past three days on the BSE, after the company reported 25% growth in net profit at Rs 2.05 billion in June quarter.

Latest News Shares of HDFC Asset Management Company have rallied 4.6% to Rs 1,916 per share, extending their 7% gain in the past three days on the BSE, after the company reported 25% growth in its net profit at Rs 2.05 billion in June quarter (Q1FY19). Revenue from operations grew by 21% to Rs 4.71 billion during the quarter against Rs 3.90 billion in the corresponding quarter of previous year. HDFC AMC Share Price assets under management (AUM) increased by 22% to Rs 3,011 billion at the end of Q1FY19 from Rs 2,478 billion in the yearago period, the company said in a release. HDFC AMC, investment manager to HDFC Mutual Fund, is the second-largest fund house in the country in terms of total AUM after ICICI Prudential Mutual Fund. The stock of HDFC Group Company was trading at its highest level since listing on August 6, 2018. It surged 74% against its issue price of Rs 1,100 per share. â&#x20AC;&#x153;HDFC AMC has been delivering robust capital return ratios of +40% over last few years and also has been having high dividend payout. The company is being valued at around 8% of FY18 AUM or 32x

FY18 P/E which offers scope for decent gains over the medium term given strong macro outlook, improving penetration of financial savings, strong distribution setup across PAN India and strong pedigree,â&#x20AC;? analysts at Prabhudas Lilladher said in an IPO note.