HDFC AMC Shares Hit Four-Year High After Q3 Profit Beats Estimates
HDFC AMC's net profit rose 33% year-on-year to Rs 489.7 crore in the quarter ended Dec. 31, 2023, beating the Bloomberg estimate of Rs 451.7 crore.
Shares of HDFC Asset Management Co. hit the highest level in over four years on Friday after third-quarter profit beat analysts' estimates.
HDFC AMC's net profit rose 33% year-on-year to Rs 489.7 crore in the quarter ended Dec. 31, 2023, according to an exchange filing. That compares with the Bloomberg estimate of Rs 451.7 crore.
Morgan Stanley has maintained an 'equal weight' rating on the company and raised the target price to Rs 3,000 apiece from Rs 2,800.
However, the brokerage trimmed the earnings per share for the current and the next financial years due to higher tax rates. Sustained inflows in the systematic-investment-plan segment to drive the growth in assets under management and offset lower equity yields, according to a note.
HDFC AMC Q3 FY24 Highlights (Standalone, YoY)
Net profit up 33% at Rs 489.7 crore. (Bloomberg estimate: Rs 451.7 crore)
Total income up 23% at Rs 813.75 crore.
Assets under management up 28% to Rs 5.75 lakh crore.
Equity AUM up 50% to Rs 3.47 lakh crore.
On the NSE, HDFC AMC's stock jumped 1.66% during the day to Rs 3,560.00 apiece, the highest since Nov 29, 2019. It erased all gains to trade 1.71% lower at Rs 3,441.90 apiece, compared to a 0.80% advance in the benchmark Nifty 50 as of 11:31 a.m.
The share price has risen 59.99% in the 12 months. The total traded volume so far in the day stood at 6.4 times its 30-day average. The relative strength index was at 72.93, implying that the stock maybe overbought.
Ten out of 23 analysts tracking the company have a 'buy' rating on the stock, 11 recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 4%.
