HDFC Asset Management Company Ltd on Thursday posted a 20.17 per cent, year-on-year (YoY), jump in its second-quarter standalone net profit for the financial year 2023-24 (Q2 FY24). The asset management company's profit came at Rs 437.56 crore in Q2 FY24 as against Rs 364.13 crore in the year-ago period. Sequentially, profit slipped by 8.37 per cent in June quarter this year from Rs 477.51 crore in Q2 FY23.
The firm's revenue from operations rose 18.06 per cent to Rs 643.08 crore from Rs 544.72 crore in the corresponding period last year. The figure was up 11.93 per cent on a quarter-on-quarter (QoQ) basis.
HDFC AMC's total expenses were up 13 per cent, at Rs 176.1 crore, in Q2 FY24 compared to Rs 155.8 crore in the same period last year.
Prabhudas Lilladher (PL) said PAT (profit after tax) was 1.2 per cent ahead of its estimates at Rs 438 crore. "Tax expense that was lower last quarter at 16.4 per cent normalised to 25.7 per cent. Hence, core PAT yields declined QoQ by 2 bps (basis points) but were in-line with our estimates (PLe)," the brokerage stated.
PL said Quarterly Average Assets Under Management (QAAUM) was largely in-line at Rs 5.24 lakh crore (PLe Rs 5.25 lakh crore) growing by 8.1 per cent QoQ. Equity along with balanced share enhanced from 51.8 per cent to 55.1 per cent QoQ, while that of liquid declined by 2.8 per cent to 13.1 per cent, it further said.
Although, the brokerage noted that opex (operating expenditure) was a miss at Rs 176 crore (PLe Rs 169 crore) due to other opex. ESOP cost was Rs 13.1 crore for Q2 FY24, it added.
HDFC AMC shares were last seen trading 0.34 per cent higher at Rs 2,756.15. On BSE, around 26,000 shares changed hands today. This was higher than the two-week average volume of 20,000 shares. Turnover on the counter stood at Rs 7.22 crore, commanding a market capitalisation (m-cap) of Rs 58,839.39 crore.
The counter has gained around 54 per cent in last six months and 43 per cent in a year.
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 62.08. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 36.95 against a price-to-book (P/B) value of 9.60.
The scrip has an analyst target price of Rs 2,523, Trendlyne data showed, suggesting a potential downside of 9 per cent in a year. It has a one-year beta of 1.23, indicating high volatility on the counter.
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