HDFC Asset Management Company Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹92,365.27 crore, a PE ratio of 44.38, a debt-to-equity ratio of 0, and a return on equity (ROE) of 29.5%. These figures indicate the company’s robust financial health and its leading position in the asset management industry.
Content:
- HDFC Asset Management Company Ltd Overview
- HDFC AMC Ltd Financial Results
- HDFC AMC Financial Analysis
- HDFC AMC Ltd Company Metrics
- HDFC AMC Ltd Stock Performance
- HDFC Asset Management Company Ltd Peer Comparison
- HDFC AMC Limited Shareholding Pattern
- HDFC AMC History
- How To Invest In HDFC AMC Limited Share?
- HDFC AMC Ltd Fundamental Analysis – FAQs
HDFC Asset Management Company Ltd Overview
HDFC Asset Management Company Ltd is a leading Indian asset management firm offering a broad range of mutual fund products and services. Known for its strong brand presence and extensive distribution network, the company caters to both retail and institutional investors across India.
The company has a market capitalization of ₹92,365.27 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading close to its 52-week high of ₹4,343, significantly above its 52-week low of ₹2,416, indicating strong investor confidence. The all-time high of the stock is ₹4,343, while the all-time low is ₹1,248.
HDFC AMC Ltd Financial Results
The company demonstrated strong financial growth from FY 23 to FY 24, with sales increasing from ₹2,167 crore to ₹2,584 crore, indicating significant revenue expansion. The company maintained a stable OPM and improved EPS over the years, showcasing its strong financial management and profitability.
- Revenue Trend: Sales revenue increased from ₹2,167 crore in FY 23 to ₹2,584 crore in FY 24, reflecting robust growth in the company’s core business operations and an increase in market demand for its products and services.
- Equity and Liabilities: As of March 2024, the company’s equity capital remained steady at ₹107 crore, while reserves increased from ₹6,001 crore to ₹6,968 crore. Other liabilities also rose from ₹428 crore in March 2023 to ₹479 crore in March 2024.
- Profitability: The Operating Profit Margin (OPM) remained stable, increasing slightly from 75% in FY 23 to 76% in FY 24, indicating efficient management of operational costs and strong profitability.
- Earnings per Share (EPS): Earnings per Share (EPS) increased from ₹66.72 in FY 23 to ₹91 in FY 24, highlighting the company’s ability to generate higher profits per share, benefiting shareholders and reflecting strong financial performance.
- Return on Net Worth (RoNW): Return on Net Worth (RoNW) increased from 23.74% in FY 23 to 27.48% in FY 24, indicating improved returns on shareholders’ equity and enhanced profitability, showcasing the company’s effective use of equity capital.
- Financial Position: The company’s EBITDA increased from ₹1,933 crore in FY 23 to ₹2,536 crore in FY 24, demonstrating strong operational performance and enhanced financial health, reflecting the company’s ability to generate higher earnings before interest, taxes, depreciation, and amortization.
HDFC AMC Financial Analysis
| FY 24 | FY 23 | |
| Sales | 2,584 | 2,167 |
| Expenses | 626.95 | 549.53 |
| Operating Profit | 1,957 | 1,617 |
| OPM % | 76 | 75 |
| Other Income | 579.02 | 315.81 |
| EBITDA | 2,536 | 1,933 |
| Interest | 9.09 | 9.69 |
| Depreciation | 52.33 | 53.34 |
| Profit Before Tax | 2,475 | 1,870 |
| Tax % | 21.51 | 23.89 |
| Net Profit | 1,943 | 1,423 |
| EPS | 91 | 66.72 |
| Dividend Payout % | 76.92 | 71.94 |
All values in ₹ Crores.
HDFC AMC Ltd Company Metrics
HDFC Asset Management Company Ltd, with a market capitalization of ₹92,365.27 crore, boasts an EPS of ₹97.1 and a book value of ₹332 per share. The company has an EBITDA of ₹2,536 crore, a dividend yield of 1.62%, zero debt, and an asset turnover of 0.45.
- Market Capitalization: HDFC Asset Management Company has a market capitalization of ₹92,365.27 crore, representing the total market value of its outstanding shares. This figure reflects the company’s strong position and investor confidence in the asset management industry.
- EBITDA: HDFC Asset Management Company reported an EBITDA of ₹1,933 crore in FY 23, which increased to ₹2,536 crore in FY 24. This growth indicates improved operational performance and profitability over these years.
- Earnings per Share (EPS): The company has an EPS of ₹97.1, reflecting the profit generated for each outstanding share of common stock. This figure demonstrates the company’s strong profitability and ability to generate returns for its shareholders.
- Face Value: The face value of HDFC Asset Management Company’s shares is ₹5.00, which is the nominal value of each share as stated on the share certificate. This figure is used in the calculation of dividends and the stock’s nominal value.
- Asset Turnover: HDFC Asset Management Company has an asset turnover ratio of 0.45, indicating the company’s efficiency in utilizing its assets to generate revenue. This ratio suggests a moderate level of asset utilization in its revenue generation.
- Total Debt: HDFC Asset Management Company is debt-free, with a total debt of ₹0.00 crore. This lack of financial leverage reflects the company’s strong financial position and its ability to operate without relying on borrowed funds.
- Dividend Yield: The company has a dividend yield of 1.62%, reflecting the annual dividend income relative to its current share price. This yield indicates a decent return on investment for shareholders through dividends.
- Book Value: HDFC Asset Management Company has a book value of ₹332 per share, representing the net asset value of the company divided by the number of outstanding shares. This figure provides insight into the company’s financial health and underlying asset value.
HDFC AMC Ltd Stock Performance
HDFC Asset Management Company delivered remarkable returns on investment with 72.0% over 1 year, 13.5% over 3 years, and 14.6% over 5 years, underscoring its strong performance and consistent returns for investors.
| Period | Return on Investment (%) |
| 1 Year | 72.0 |
| 3 Years | 13.5 |
| 5 Years | 14.6 |
Example: If an investor had invested ₹1,000 in HDFC AMC’s stock:
1 year ago, their investment would be worth ₹1,720.
3 years ago, their investment would have grown to ₹1,135.
5 years ago, their investment would have increased to approximately ₹1,146.
This highlights the company’s impressive short-term gains and steady long-term profitability for investors.
HDFC Asset Management Company Ltd Peer Comparison
HDFC AMC, with a market cap of ₹92,473.12 crore, offers the highest ROE at 29.51% and a strong EPS of ₹97.06. Despite its high P/E ratio of 44.62, it outperforms peers like Bajaj Finance and Bajaj Finserv in 1-year returns, delivering a robust 71.96%.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| 1 | Bajaj Finance | 6729.1 | 416528.84 | 27.88 | 22.12 | 242.47 | -4.92 | 11.93 | 0.54 |
| 2 | Bajaj Finserv | 1620.55 | 258747.05 | 30.98 | 15.28 | 52.28 | 9.15 | 11.72 | 0.06 |
| 3 | Jio Financial | 336.1 | 213533.87 | 134.7 | 1.27 | 2.5 | 41.32 | 1.55 | 0 |
| 4 | Shriram Finance | 3177.75 | 119471.04 | 15.8 | 15.93 | 204.54 | 71.26 | 11.27 | 1.42 |
| 5 | Cholaman.Inv.&Fn | 1386 | 116469.74 | 31.82 | 20.16 | 43.74 | 30.64 | 10.41 | 0.14 |
| 6 | Bajaj Holdings | 9759.95 | 108618.5 | 14.56 | 14.77 | 670.49 | 38.24 | 13.07 | 1.34 |
| 7 | HDFC AMC | 4329.05 | 92473.12 | 44.62 | 29.51 | 97.06 | 71.96 | 37.72 | 1.62 |
HDFC AMC Limited Shareholding Pattern
In FY 2024, HDFC AMC’s promoters’ holding dropped to 52.55% from 62.77% in FY 2023. FII holdings surged to 20.01%, while DII holdings rose to 18.37%. Retail and others’ holdings decreased to 9.06%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 52.55 | 62.77 | 68.81 |
| FII | 20.01 | 7.5 | 10.42 |
| DII | 18.37 | 17.63 | 9.01 |
| Retail & others | 9.06 | 12.1 | 11.75 |
All values in %
HDFC AMC History
HDFC Asset Management Company (HDFC AMC) was established in 1999 as a joint venture between HDFC Ltd and Standard Life Investments. It quickly emerged as a leading asset management firm in India, offering a wide range of mutual fund products to both retail and institutional investors.
Over the years, HDFC AMC gained significant market share due to its strong brand presence, customer-centric approach, and extensive distribution network. The company has consistently focused on delivering long-term value to its investors through disciplined investment strategies and robust risk management practices.
In 2018, HDFC AMC went public, with its initial public offering (IPO) receiving an overwhelming response from investors. This marked a major milestone in the company’s journey, further solidifying its position as a key player in the Indian asset management industry.
Today, HDFC AMC continues to lead the industry with innovative products and services, maintaining its commitment to investor satisfaction and financial growth. The company’s strong financial performance and consistent returns have made it a trusted choice for millions of investors across the country.
How To Invest In HDFC AMC Limited Share?
Investing in HDFC AMC Limited shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for HDFC AMC Limited shares and place your buy order.
HDFC AMC Ltd Fundamental Analysis – FAQs
HDFC AMC Ltd has a market cap of ₹92,365.27 crore, a PE ratio of 44.38, a debt-to-equity ratio of 0, and a return on equity (ROE) of 29.5%, indicating strong financial health.
The market capitalization of HDFC Asset Management Company Ltd is ₹92,365.27 crore, reflecting the total market value of its outstanding shares.
HDFC AMC Ltd is a leading Indian asset management company providing mutual fund and portfolio management services to retail and institutional investors.
HDFC AMC Ltd is primarily owned by HDFC Ltd and Standard Life Investments, with significant institutional and public shareholding.
Major shareholders of HDFC AMC Ltd in FY 2024 include Promoters at 52.55%, Foreign Institutional Investors (FIIs) holding 20.01%, Domestic Institutional Investors (DIIs) at 18.37%, and Retail & others holding 9.06%.
HDFC AMC is considered a strong stock due to its robust financials and industry leadership, though its high PE ratio suggests careful consideration of valuation.
HDFC AMC operates in the asset management industry, offering mutual funds and portfolio management services.
Investors can buy HDFC AMC shares through stock exchanges by opening a trading account with a broker or via mutual fund platforms.
Determining if HDFC AMC is overvalued or undervalued requires analyzing its current market price against its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 44.38, it suggests that the stock might be overvalued, reflecting high market expectations and strong growth potential.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
