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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of HDFC Asset Management Company Ltd

About the Company - HDFC Asset Management Company Ltd

HDFC Asset Management Company Ltd. is a Public Limited Listed company incorporated on 10/12/1999 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65991MH1999PLC123027 and registration number is 123027. Currently Company is involved in the business activities of Management of mutual funds. Company’s Total Operating Revenue is Rs. 2115.36 Cr. and Equity Capital is Rs. 106.64 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Mutual FundsHDFC House, 2nd Floor, Mumbai Maharashtra 400020shareholders.relations@hdfcfund.com
http://www.hdfcfund.com
Management
NamePosition Held
Mr. Deepak S ParekhChairman & Non-Exe.Director
Mr. Navneet MunotManaging Director & CEO
Mr. Keki MistryNon Executive Director
Ms. Renu S KarnadNon Executive Director
Ms. Roshni Nadar MalhotraIndependent Director
Mr. Dhruv KajiIndependent Director
Mr. Parag ShahIndependent Director
Mr. Sanjay BhandarkarIndependent Director
Mr. Jairaj PurandareIndependent Director

Basic Stock Data of HDFC Asset Management Company Ltd

Last Updated: May 30, 2024, 6:21 am

Market Cap 81,600 Cr.
Current Price 3,827
High / Low4,066/1,739
Stock P/E41.9
Book Value 332
Dividend Yield1.25 %
ROCE37.7 %
ROE29.5 %
Face Value 5.00
PEG Ratio7.51

HDFC Asset Management Company Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales482503507542550516522545560541575643671
Expenses96107126131135123132140146130146161160
Operating Profit386396381411414393390405413411429482511
OPM %80%79%75%76%75%76%75%74%74%76%75%75%76%
Other Income113431016686651110410397158122142
Interest2222222222222
Depreciation14141414131314131313131313
Profit before tax483423466461485443385493501492571589639
Tax %23%25%26%25%26%22%18%26%26%24%16%26%23%
Net Profit369316345344360344314364369376478438490
EPS in Rs17.3414.8416.2116.1616.8716.1114.7317.0717.3117.6322.3720.5022.94

Last Updated: May 14, 2024, 5:08 pm

HDFC Asset Management Company Ltd Quarterly Chart

HDFC Asset Management Company Ltd Profit & Loss

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7778981,0561,4901,5681,8702,0752,1242,1942,4292,4782,318
Expenses321372432775776802709431388515549584
Operating Profit4565256247157921,0681,3661,6931,8061,9131,9291,734
OPM %59%59%59%48%51%57%66%80%82%79%78%75%
Other Income76942002219844480
Interest-0-0-0-0-0-0-0999109
Depreciation1681011129135055545352
Profit before tax4475226237088001,0581,3751,6531,7491,8551,8712,153
Tax %29%32%33%33%31%33%32%24%24%25%24%
Net Profit3193584164785507119311,2621,3261,3931,4241,661
EPS in Rs126.28141.74164.61189.90218.6433.7843.7859.3262.2665.3266.7277.81
Dividend Payout %35%35%39%42%42%47%55%47%55%64%72%

HDFC Asset Management Company Ltd Profit & Loss Yearly Chart

HDFC Asset Management Company Ltd Growth

Compounded Sales Growth
10 Years:11%
5 Years:4%
3 Years:6%
TTM:4%
Compounded Profit Growth
10 Years:18%
5 Years:16%
3 Years:14%
TTM:37%
Stock Price CAGR
10 Years:%
5 Years:17%
3 Years:9%
1 Year:106%
Return on Equity
10 Years:31%
5 Years:29%
3 Years:27%
Last Year:30%

Last Updated: May 23, 2024, 3:43 pm

HDFC Asset Management Company Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2525252525105106106106107107107
Reserves6778761,0951,1261,3982,1492,9643,9234,6705,4236,0025,918
Borrowings000000000000
Other Liabilities765220192272177218153279319350428405
Total Liabilities1,4671,1211,3121,4231,6002,4723,2244,3095,0955,8806,5376,430
Fixed Assets19283431313140157153135150138
CWIP000126351020
Investments6657376519861,2372,0582,9353,9454,7535,5706,0795,960
Other Assets784357627405329378246203187175305332
Total Assets1,4671,1211,3121,4231,6002,4723,2244,3095,0955,8806,5376,430

HDFC Asset Management Company Ltd Reserves and Borrowings Chart

HDFC Asset Management Company Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 7424556188941,2851,0851,2541,149
Cash from Investing Activity -297-176-633-777-928-483-508-218
Cash from Financing Activity -447-27915-119-332-628-746-930
Net Cash Flow-201-126-2501

HDFC Asset Management Company Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days966920181510131127
Inventory Days
Days Payable
Cash Conversion Cycle966920181510131127
Working Capital Days-6-31990917-1111-22-17-16-4
ROCE %65%62%62%62%58%52%47%40%36%32%

HDFC Asset Management Company Ltd Financial Efficiency Indicators Chart

HDFC Asset Management Company Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters73.88%68.85%68.84%68.81%68.80%62.80%62.78%62.76%52.55%52.55%52.55%52.55%
FIIs9.14%8.95%10.54%10.42%7.28%12.34%12.09%7.50%12.99%16.12%17.99%20.01%
DIIs6.57%7.58%9.44%9.02%11.32%12.27%13.40%17.63%22.32%20.66%19.50%18.37%
Public10.41%14.62%11.19%11.75%12.59%12.58%11.72%12.10%12.15%10.67%9.96%9.06%
No. of Shareholders4,56,7334,57,2095,49,6955,77,0105,99,5225,93,8515,50,0555,54,5695,49,3374,97,9614,57,9104,36,183

HDFC Asset Management Company Ltd Shareholding Pattern Chart

No. of HDFC Asset Management Company Ltd Shareholders

HDFC Asset Management Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Focused Equity Fund3,334,8253.11911.74
SBI Equity Hybrid Fund2,548,6001.17696.79
Nippon India Multi Cap Fund2,000,7472.62547
SBI Large & Midcap Fund1,604,0002.8438.53
Mirae Asset Emerging Bluechip Fund1,467,4761.43401.21
ICICI Prudential Bluechip Fund1,321,0220.88361.17
SBI Long Term Equity Fund1,014,4161.76277.34
Nippon India Large Cap Fund800,2161.31218.78
Mirae Asset Midcap Fund795,9941.85217.62
SBI Flexi Cap Fund720,0781.12196.87

HDFC Asset Management Company Ltd ROCE Trend

HDFC Asset Management Company Ltd EPS Trend

HDFC Asset Management Company Ltd Key Financial Ratios

MonthMar 23
FaceValue5.00
Basic EPS (Rs.)66.72
Diluted EPS (Rs.)66.71
Cash EPS (Rs.)69.19
Book Value[Excl.RevalReserv]/Share (Rs.)286.19
Book Value[Incl.RevalReserv]/Share (Rs.)286.19
Revenue From Operations / Share (Rs.)101.53
PBDIT / Share (Rs.)90.58
PBIT / Share (Rs.)88.08
PBT / Share (Rs.)87.62
Net Profit / Share (Rs.)66.69
NP After MI And SOA / Share (Rs.)66.69
PBDIT Margin (%)89.21
PBIT Margin (%)86.75
PBT Margin (%)86.30
Net Profit Margin (%)65.68
NP After MI And SOA Margin (%)65.68
Return on Networth / Equity (%)23.30
Return on Capital Employeed (%)30.01
Return On Assets (%)21.77
Current Ratio (X)23.23
Quick Ratio (X)23.23
Dividend Payout Ratio (NP) (%)62.93
Dividend Payout Ratio (CP) (%)60.66
Earning Retention Ratio (%)37.07
Cash Earning Retention Ratio (%)39.34
Interest Coverage Ratio (X)199.49
Interest Coverage Ratio (Post Tax) (X)147.89
Enterprise Value (Cr.)36396.02
EV / Net Operating Revenue (X)16.80
EV / EBITDA (X)18.83
MarketCap / Net Operating Revenue (X)16.80
Retention Ratios (%)37.06
Price / BV (X)5.96
Price / Net Operating Revenue (X)16.80
EarningsYield0.03

HDFC Asset Management Company Ltd Profitability Ratios (%)

HDFC Asset Management Company Ltd Liquidity Ratios

HDFC Asset Management Company Ltd Liquidity Ratios (%)

HDFC Asset Management Company Ltd Interest Coverage Ratios (%)

HDFC Asset Management Company Ltd Valuation Ratios

Fair Value

Fair Value: ₹4,154.98

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 8.57% compared to the current price ₹3827

Intrinsic Value: ₹4,386.68

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 14.62% compared to the current price ₹3827

Last 5 Year EPS CAGR: 5.58%

*Investments are subject to market risks

Strength and Weakness of HDFC Asset Management Company Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 46.91%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -24.36, which is a positive sign.
  3. The company has higher reserves (3,018.42 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (140.92 cr) and profit (259.00 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 13.09, which may not be favorable.

FAQ

What is the latest fair value of HDFC Asset Management Company Ltd?

The latest fair value of HDFC Asset Management Company Ltd is ₹4154.98.

What is the Market Cap of HDFC Asset Management Company Ltd?

The Market Cap of HDFC Asset Management Company Ltd is 81,600 Cr..

What is the current Stock Price of HDFC Asset Management Company Ltd as on 30 May 2024?

The current stock price of HDFC Asset Management Company Ltd as on 30 May 2024 is ₹3,827.

What is the High / Low of HDFC Asset Management Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of HDFC Asset Management Company Ltd stocks is 4,066/1,739.

What is the Stock P/E of HDFC Asset Management Company Ltd?

The Stock P/E of HDFC Asset Management Company Ltd is 41.9.

What is the Book Value of HDFC Asset Management Company Ltd?

The Book Value of HDFC Asset Management Company Ltd is 332.

What is the Dividend Yield of HDFC Asset Management Company Ltd?

The Dividend Yield of HDFC Asset Management Company Ltd is 1.25 %.

What is the ROCE of HDFC Asset Management Company Ltd?

The ROCE of HDFC Asset Management Company Ltd is 37.7 %.

What is the ROE of HDFC Asset Management Company Ltd?

The ROE of HDFC Asset Management Company Ltd is 29.5 %.

What is the Face Value of HDFC Asset Management Company Ltd?

The Face Value of HDFC Asset Management Company Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in HDFC Asset Management Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE