Buy HDFC Asset Management Company, target price Rs 2550: JM Financial

JM Financial has buy call on HDFC Asset Management Company with a target price of Rs 2550. The current market price of HDFC Asset Management Company is Rs 2186.55 .

HDFC Asset Management Company, incorporated in the year 1999, is a Large Cap company (having a market cap of Rs 46755.40 Crore) operating in Financial Services sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 648.93 Crore, unchanged .00 % from last quarter Total Income of Rs Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company has reported net profit after tax of Rs 363.85 Crore in latest quarter.

The company’s top management includes Mr.Deepak S Parekh, Mr.Sanjay Bhandarkar, Mr.Parag Shah, Mr.Jairaj Purandare, Mr.Dhruv Kaji, Mr.Rushad Abadan, Ms.Renu S Karnad, Mr.Keki Mistry, Mr.Navneet Munot, Ms.Roshni Nadar Malhotra. Company has B S R & Co. LLP as its auditors. As on 30-06-2022, the company has a total of 21 Crore shares outstanding.

Investment Rationale
Within the AMC pack, HDFC AMC is the top pick of the brokerage as it is expected to witness a meaning re-rating in the near to medium term on the back of robust AUM and return to earnings growth trajectory.

Promoter/FII Holdings
Promoters held 68.8 per cent stake in the company as of 30-Jun-2022, while FIIs owned 16.51 per cent, DIIs 2.09 per cent.