Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 541729 | NSE: HDFCAMC

HDFC Asset Management Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:11 am

Market Cap 94,214 Cr.
Current Price 4,410
High / Low4,546/2,691
Stock P/E45.5
Book Value 332
Dividend Yield1.59 %
ROCE37.7 %
ROE29.5 %
Face Value 5.00
PEG Ratio5.07

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for HDFC Asset Management Company Ltd

Competitors of HDFC Asset Management Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aditya Birla Sun Life AMC Ltd 20,093 Cr. 696775/42324.2 1101.94 %34.9 %27.4 % 5.00
UTI Asset Management Company Ltd 15,687 Cr. 1,2301,341/74120.0 3451.95 %22.6 %18.6 % 10.0
Nippon Life India Asset Management Ltd 40,609 Cr. 641740/34533.7 63.22.57 %36.2 %29.5 % 10.0
HDFC Asset Management Company Ltd 94,214 Cr. 4,4104,546/2,69145.5 3321.59 %37.7 %29.5 % 5.00
Industry Average42,650.75 Cr1,744.2530.85212.552.01%32.85%26.25%7.50

All Competitor Stocks of HDFC Asset Management Company Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales503507542550516522545560541575643671695
Expenses107126131135123132140146130146161160156
Operating Profit396381411414393390405413411429482511539
OPM %79%75%76%75%76%75%74%74%76%75%75%76%78%
Other Income431016686651110410397158122142155
Interest2222222222222
Depreciation14141413131413131313131313
Profit before tax423466461485443385493501492571589639679
Tax %25%26%25%26%22%18%26%26%24%16%26%23%20%
Net Profit316345344360344314364369376478438490541
EPS in Rs14.8416.2116.1616.8716.1114.7317.0717.3117.6322.3720.5022.9425.35

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales7778981,0561,4901,5681,8702,0752,1242,1942,4292,4782,584
Expenses321372432775776802709431388515549623
Operating Profit4565256247157921,0681,3661,6931,8061,9131,9291,961
OPM %59%59%59%48%51%57%66%80%82%79%78%76%
Other Income76942002219844578
Interest0000000999109
Depreciation1681011129135055545352
Profit before tax4475226237088001,0581,3751,6531,7491,8551,8712,478
Tax %29%32%33%33%31%33%32%24%24%25%24%21%
Net Profit3193584164785507119311,2621,3261,3931,4241,946
EPS in Rs126.28141.74164.61189.90218.6433.7843.7859.3262.2665.3266.7291.15
Dividend Payout %35%35%39%42%42%47%55%47%55%64%72%77%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)12.23%16.20%14.90%15.06%29.27%30.94%35.55%5.07%5.05%2.23%36.66%
Change in YoY Net Profit Growth (%)0.00%3.98%-1.30%0.16%14.21%1.67%4.61%-30.48%-0.02%-2.83%34.43%

HDFC Asset Management Company Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:9%
3 Years:13%
TTM:25%
Compounded Profit Growth
10 Years:18%
5 Years:16%
3 Years:14%
TTM:31%
Stock Price CAGR
10 Years:%
5 Years:10%
3 Years:15%
1 Year:61%
Return on Equity
10 Years:31%
5 Years:29%
3 Years:27%
Last Year:30%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital2525252525105106106106107107107
Reserves6778761,0951,1261,3982,1492,9643,9234,6705,4236,0026,972
Borrowings000000000000
Other Liabilities765220192272177218153279319350428478
Total Liabilities1,4671,1211,3121,4231,6002,4723,2244,3095,0955,8806,5377,558
Fixed Assets19283431313140157153135150151
CWIP000126351021
Investments6657376519861,2372,0582,9353,9454,7535,5706,0797,190
Other Assets784357627405329378246203187175305215
Total Assets1,4671,1211,3121,4231,6002,4723,2244,3095,0955,8806,5377,558

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 7424556188941,2851,0851,2541,1491,620
Cash from Investing Activity -297-176-633-777-928-483-508-218-547
Cash from Financing Activity -447-27915-119-332-628-746-930-1,066
Net Cash Flow-201-126-25017

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow456.00525.00624.00715.00792.001.001.001.001.001.001.001.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days96692018151013112711
Inventory Days
Days Payable
Cash Conversion Cycle96692018151013112711
Working Capital Days-6-31990917-1111-22-17-16-4-18
ROCE %65%62%62%62%58%52%47%40%36%32%38%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters68.85%68.84%68.81%68.80%62.80%62.78%62.76%52.55%52.55%52.55%52.55%52.52%
FIIs8.95%10.54%10.42%7.28%12.34%12.09%7.50%12.99%16.12%17.99%20.01%20.60%
DIIs7.58%9.44%9.02%11.32%12.27%13.40%17.63%22.32%20.66%19.50%18.37%17.67%
Public14.62%11.19%11.75%12.59%12.58%11.72%12.10%12.15%10.67%9.96%9.06%9.20%
No. of Shareholders4,57,2095,49,6955,77,0105,99,5225,93,8515,50,0555,54,5695,49,3374,97,9614,57,9104,36,1834,32,584

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Focused Equity Fund2,900,0003.41129.451,014,4162024-10-10185.88%
SBI Equity Hybrid Fund2,100,0001.2817.881,014,4162024-10-10107.02%
SBI Large & Midcap Fund1,704,5662.93663.871,014,4162024-10-1068.03%
Nippon India Multi Cap Fund1,700,7472.17662.381,014,4162024-10-1067.66%
Mirae Asset Large & Midcap Fund1,567,4761.75610.481,014,4162024-10-1054.52%
ICICI Prudential Bluechip Fund1,457,5301.03567.661,014,4162024-10-1043.68%
SBI Long Term Equity Fund1,014,4161.69395.081,014,4162024-10-100%
Mirae Asset Midcap Fund1,013,7142.61394.811,014,4162024-10-10-0.07%
Mirae Asset ELSS Tax Saver Fund834,2631.45324.921,014,4162024-10-10-17.76%
Nippon India Large Cap Fund700,2161.04272.711,014,4162024-10-10-30.97%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue5.005.00
Basic EPS (Rs.)91.0066.72
Diluted EPS (Rs.)90.8966.71
Cash EPS (Rs.)93.4569.19
Book Value[Excl.RevalReserv]/Share (Rs.)331.41286.19
Book Value[Incl.RevalReserv]/Share (Rs.)331.41286.19
Revenue From Operations / Share (Rs.)121.06101.53
PBDIT / Share (Rs.)118.8190.58
PBIT / Share (Rs.)116.3688.08
PBT / Share (Rs.)115.9487.62
Net Profit / Share (Rs.)91.0066.69
NP After MI And SOA / Share (Rs.)91.0066.69
PBDIT Margin (%)98.1489.21
PBIT Margin (%)96.1286.75
PBT Margin (%)95.7686.30
Net Profit Margin (%)75.1765.68
NP After MI And SOA Margin (%)75.1765.68
Return on Networth / Equity (%)27.4523.30
Return on Capital Employeed (%)34.0930.01
Return On Assets (%)25.7121.77
Asset Turnover Ratio (%)0.360.00
Current Ratio (X)27.2723.23
Quick Ratio (X)27.2723.23
Dividend Payout Ratio (NP) (%)52.7462.93
Dividend Payout Ratio (CP) (%)51.3660.66
Earning Retention Ratio (%)47.2637.07
Cash Earning Retention Ratio (%)48.6439.34
Interest Coverage Ratio (X)279.04199.49
Interest Coverage Ratio (Post Tax) (X)214.72147.89
Enterprise Value (Cr.)80082.2336396.02
EV / Net Operating Revenue (X)30.9916.80
EV / EBITDA (X)31.5718.83
MarketCap / Net Operating Revenue (X)31.0016.80
Retention Ratios (%)47.2537.06
Price / BV (X)11.325.96
Price / Net Operating Revenue (X)31.0016.80
EarningsYield0.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of HDFC Asset Management Company Ltd as of October 11, 2024 is: ₹4,527.12

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.

As of October 11, 2024, HDFC Asset Management Company Ltd is Undervalued by 2.66% compared to the current share price ₹4,410.00

Intrinsic Value of HDFC Asset Management Company Ltd as of October 11, 2024 is: ₹4,933.25

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, HDFC Asset Management Company Ltd is Undervalued by 11.87% compared to the current share price ₹4,410.00

Last 5 Year EPS CAGR: 8.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 46.17%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -23.83, which is a positive sign.
  3. The company has higher reserves (3,106.25 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 12.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in HDFC Asset Management Company Ltd:
    1. Net Profit Margin: 75.17%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 34.09% (Industry Average ROCE: 32.85%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 27.45% (Industry Average ROE: 26.25%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 214.72
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 27.27
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 45.5 (Industry average Stock P/E: 30.85)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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. V Srinivasa RanganExecutive Director
Ms. Renu S KarnadNon Executive Director
Ms. Roshni Nadar MalhotraIndependent Director
Mr. Dhruv KajiIndependent Director
Mr. Sanjay BhandarkarIndependent Director
Mr. Jairaj PurandareIndependent Director
Mr. Parag ShahIndependent Director

FAQ

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

The latest fair value of HDFC Asset Management Company Ltd is ₹4527.12.

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

The Market Cap of HDFC Asset Management Company Ltd is 94,214 Cr..

What is the current Stock Price of HDFC Asset Management Company Ltd as on 11 October 2024?

The current stock price of HDFC Asset Management Company Ltd as on 11 October 2024 is ₹4,410.

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 4,546/2,691.

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

The Stock P/E of HDFC Asset Management Company Ltd is 45.5.

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 1.59 %.

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