HDFC Asset Management Company (AMC) is a leading mutual fund house in India, managing a wide range of investment products for individuals and institutions.
HDFC AMC Overview
| Category | Details |
|---|---|
| Company Name | HDFC Asset Management Company Ltd. (HDFC AMC) |
| Year Founded | 1999 |
| Joint Venture with | abrdn Investment Management (erstwhile Standard Life Investments Limited) |
| Listed on | Indian Stock Exchanges (NSE & BSE) |
| Asset Under Management (AUM) | ₹5 lakh crore+ |
| Types of Funds Offered | Equity, Debt, Hybrid, Thematic |
| Investment Team | Experienced professionals with diverse asset class expertise |
| Strengths | Strong brand reputation, large and diverse AUM, wide range of products, strong performance track record, focus on investor education |
| Challenges | Market volatility, economic uncertainty, regulatory changes, competition |
HDFC AMC Products
| Category | Sub-Category | Example Funds |
|---|---|---|
| Equity Funds | Large Cap | HDFC Top 100 Fund, HDFC Midcap Opportunities Fund |
| Mid Cap | HDFC Small Cap Fund, HDFC Small Cap Flexi Fund | |
| Small Cap | HDFC Small Cap Fund, HDFC Small Cap Flexi Fund | |
| Multi Cap | HDFC Equity Savings Fund, HDFC Balanced Advantage Fund | |
| Thematic & Sectoral | HDFC Infrastructure Fund, HDFC Consumer Opportunities Fund | |
| ELSS (Tax Saving) | HDFC TaxAdvantage Fund, HDFC Children’s Gift Fund | |
| Debt Funds | Short Term | HDFC Cash Management Fund, HDFC Ultra Short Term Bond Fund |
| Medium Term | HDFC Income Opportunities Fund, HDFC Dynamic Debt Fund | |
| Long Term | HDFC Gilt Fund, HDFC Gilt Plus Fund | |
| Hybrid Funds | Balanced | |
| Equity Oriented Hybrid | HDFC Aggressive Hybrid Fund, HDFC Equity Savings Fund | |
| Debt Oriented Hybrid | HDFC Debt Opportunities Fund, HDFC Conservative Hybrid Fund | |
| Solution Oriented Funds | Retirement | HDFC Retirement Savings Fund, HDFC Children’s Gift Fund |
| Children’s | HDFC Children’s Gift Fund, HDFC Child Education Plan |
HDFC AMC Awards and Recognition
| Year | Award/Recognition | Category | Awarded by |
|---|---|---|---|
| 2023 | M&A Deal of the Year | Proposed Merger of HDFC Ltd with HDFC Bank | Mint’s India Investment Summit |
| 2022 | 23rd Annual Report 2021-22 | Highest Overall Ranking (Equity Large Cap Category) | Crisil MF Ranking Survey |
| 2021 | Best Private Bank in India | Private Banking | Global Private Banking Awards |
| 2021 | Best for wealth transfer – succession planning in India | Private Banking | Asiamoney Asia Private Banking Awards |
| 2021 | Best Bank in India | Overall | Euromoney Awards for Excellence |
| 2020 | India’s Best Bank | Overall | Euromoney Awards for Excellence |
| 2019 | Private Sector Bank of the Year | Overall | 18th Outlook Money Awards |
| 2019 | India’s Best Bank | Overall | Euromoney Awards for Excellence |
| 2018 | Best Private Bank in India | Private Banking | The Banker Global Private Banking Awards |
| 2018 | Highest Overall Ranking (Debt Medium Term Category) | Crisil MF Ranking Survey | |
| 2016 | Dun & Bradstreet Corporate Awards | Financial Institutions/Non-Banking Financial Companies/Financial Services | Dun & Bradstreet |
| 2014 | Dun & Bradstreet – Manappuram Finance Limited Corporate Awards | Financial Institutions/Non-Banking Financial Companies/Financial Services | Dun & Bradstreet |
HDFC AMC Fundamentals
| Metric | Current Value (As of January 2, 2024) | Significance |
|---|---|---|
| Market Capitalization (Cr.) | ₹68,769.60 | Indicates company size and investor valuation |
| Book Value per Share (Rs.) | 5996.45 | Measures company’s net worth per share |
| Price-to-Book Ratio (P/B) | 29.69 | Compares market price to book value, higher P/B implies higher investor expectations |
| Price-to-Earnings Ratio (P/E) | 11.48 | Compares market price to earnings per share, lower P/E suggests potential value |
| Earnings per Share (Rs.) | 1660.67 | Measures company’s profitability per share |
| Net Profit (Cr.) | 1660.67 | Reflects company’s overall profitability |
| Five-Year EPS Growth (%) | 51.56% | Shows impressive growth in earnings per share over the past five years |
| Dividend Yield (%) | N/A | Not applicable for HDFC AMC currently |
| Face Value (Rs.) | N/A | Not applicable for HDFC AMC |
HDFC AMC Revenue and Net Profit
| Period | Assets Under Management (AUM) in Cr. | Net Profit (Cr.) | Earnings per Share (EPS) |
|---|---|---|---|
| Q2 FY24 (September 2023) | 643.08 | 436.5 | 1660.67 |
| Q1 FY24 (June 2023) | 574.54 | 477.4 | 1839.13 |
| FY23 (March 2023) | N/A | 1388.9 | 5326.15 |
| FY22 (March 2022) | N/A | 905.1 | 3460.43 |
HDFC AMC Shareholding Patterns
| Shareholder Group | Percentage Holding |
|---|---|
| Promoters: HDFC Ltd. & abrdn Investment Management | 52.55% |
| Mutual Funds: Domestic | 10.29% |
| Foreign Institutional Investors (FIIs): | 16.12% |
| Domestic Institutional Investors (DIIs): | 10.96% |
| Public/Retail Shareholders: | 10.08% |
HDFC AMC Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Target |
|---|---|
| 2025 | ₹3,800 – ₹4,200 |
| 2026 | ₹4,200 – ₹4,600 |
| 2027 | ₹4,600 – ₹5,000 |
| 2028 | ₹5,000 – ₹5,500 |
| 2029 | ₹5,500 – ₹6,000 |
HDFC AMC Share Price Target for 2025
HDFC AMC Share Price Target for 2025 is ₹3,800 – ₹4,200.
HDFC AMC Share Price Target for 2026
HDFC AMC Share Price Target for 2026 is ₹4,200 – ₹4,600.
HDFC AMC Share Price Target for 2027
HDFC AMC Share Price Target for 2027 is ₹4,600 – ₹5,000.
HDFC AMC Share Price Target for 2028
HDFC AMC Share Price Target for 2028 is ₹5,000 – ₹5,500.
HDFC AMC Share Price Target for 2029
HDFC AMC Share Price Target for 2029 is ₹5,500 – ₹6,000.
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HDFC AMC Dividend History
| Year | Dividend per Share (Rs.) | Date Announced | Ex-Date | Payment Date |
|---|---|---|---|---|
| 2023 | 48.00 | Apr 25, 2023 | Jun 9, 2023 | Jun 29, 2023 |
| 2022 | 42.00 | Apr 26, 2022 | Jun 8, 2022 | Jun 28, 2022 |
| 2021 | 34.00 | Apr 26, 2021 | Jun 29, 2021 | Jul 16, 2021 |
| 2020 | 28.00 | May 11, 2020 | Jul 7, 2020 | Jul 27, 2020 |
| 2019 | 12.00 | Apr 26, 2019 | Jul 3, 2019 | Jul 23, 2019 |
Future Outlook of HDFC AMC
Positive Indications:
- Strong AUM growth: HDFC AMC consistently demonstrates impressive growth in assets under management (AUM), exceeding ₹5 lakh crore as of October 2023. This signifies rising investor confidence and potential fee income growth.
- Leading market position: HDFC AMC maintains a dominant position within the Indian mutual fund industry with a significant market share. This brand recognition and strong distribution network offer advantages over competitors.
- Favorable market conditions: The Indian economy is projected to witness continued growth in the coming years, potentially stimulating demand for investment products and benefiting asset management companies like HDFC AMC.
- Focus on innovation and technology: HDFC AMC actively invests in technological advancements and product development, aiming to cater to evolving investor needs and stay ahead of competition.
Risks Associated With Investing in HDFC AMC
| Category | Risk | Description | Potential Impact |
|---|---|---|---|
| Market Risk | Equity Market Volatility | Fluctuations in the stock market can impact the value of HDFC AMC shares, leading to potential losses. | Reduced portfolio value, missed investment goals |
| Debt Market Volatility | Changes in interest rates can affect the performance of HDFC AMC’s debt-oriented funds, impacting investor returns. | Lower returns, underperformance compared to expectations | |
| Industry Risk | Competition | Increased competition from new players or existing rivals could erode HDFC AMC’s market share and affect its profitability. | Lower AUM growth, reduced income, decreased shareholder value |
| Regulatory Changes | New regulations or policy changes within the financial sector could impact fees, operating costs, or product offerings, posing challenges for HDFC AMC. | Reduced profitability, changed business model, increased compliance burden | |
| Company-Specific Risk | Management Performance | Poor management decisions or execution failures could negatively impact HDFC AMC’s financial performance and shareholder returns. | Lower profitability, share price decline, reputational damage |
| Operational Delays | Technical glitches, disruptions in services, or fraud could damage investor confidence and negatively impact AUM and revenue. | Reduced investor trust, reputational damage, financial losses | |
| Investment-Specific Risk | Fund Performance | Individual mutual funds offered by HDFC AMC may underperform benchmark indexes or fail to meet stated investment objectives. | Lower returns than anticipated, missed financial goals |
| Liquidity Risk | Certain funds may have limited liquidity, making it difficult to sell shares quickly without impacting the price. | Difficulty exiting investment, potential losses due to forced selling |
HDFC AMC Competitors
| Competitor | Strengths | Target Market/Focus |
|---|---|---|
| Reliance Nippon Life Asset Management (RNAM) | Strong brand recognition, extensive distribution network, large AUM | Retail investors, diversified product range |
| UTI Asset Management Company (UTI AMC) | Government-backed trust, strong presence in government schemes, long track record | Retail investors, pension funds, government institutions |
| ICICI Prudential Asset Management Company (IPAMC) | Leading private sector AMC, strong brand with international parentage, focus on equity funds | Retail and institutional investors, thematic and sector-specific funds |
| Axis Mutual Fund (Axis MF) | Strong performance in equity funds, innovative product offerings, focus on technology | Retail and institutional investors, actively managed funds |
| Aditya Birla Sun Life AMC (ABSL AMC) | Diversified product range, strong brand, focus on rural markets | Retail investors, balanced and hybrid funds |
| BNP Paribas Mutual Fund (BNP MF) | International parentage, expertise in global investments, focus on niche products | Institutional investors, thematic funds with global exposure |
| SBI Mutual Fund (SBI MF) | Largest AUM in India, extensive rural reach, government backing | Retail investors, debt-oriented funds, index funds |
HDFC AMC Share Price FAQs
Is HDFC AMC a good investment?
Whether HDFC AMC is a good investment for you depends on your individual financial goals, risk tolerance, and investment horizon. Carefully research the company, consider its strengths and weaknesses, analyze competitive dynamics, and consult with a financial advisor before making any investment decisions. Remember, past performance is not necessarily indicative of future results, and investing carries inherent risks.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
