Buy Hdfc Amc, target price Rs 3875: IIFL Securities

IIFL Securities recommends buying HDFC AMC shares at the current market price of Rs 3770.05. The brokerage firm has a target price of Rs 3875 for the stock, indicating an upside potential of around 2.7%. The recommendation is based on the company's strong distribution network, healthy asset management business, and attractive valuations. HDFC AMC is a leading asset manager in India with a diversified portfolio of equity, debt, and hybrid products. The company has a strong distribution network and a wide reach across the country.

About Hdfc Amc:

HDFC Asset Management Company Limited (HDFC AMC) is one of the leading asset management companies in India. It is a wholly-owned subsidiary of HDFC Bank, one of the largest private sector banks in the country. HDFC AMC offers a wide range of mutual fund schemes across equity, debt, hybrid, and international categories. The company also provides pension and portfolio management services. As of March 31, 2023, HDFC AMC had assets under management (AUM) of over ₹4.5 lakh crore. It has a strong distribution network of over 12,000 financial advisors and over 100 branches across the country. HDFC AMC is known for its consistent performance and customer-centric approach.

52 Week Price Trend:

HDFC AMC (NSE: HDFCAMC), currently trading at Rs 3770.05, presents an attractive opportunity for investors. Its 52-week high of Rs 3910.35 indicates potential for upside growth. Despite the challenging market conditions that led to a 52-week low of Rs 1589.5, the company has demonstrated resilience and its stock price has seen a steady recovery. Its strong fundamentals, including a robust asset management platform, diverse product offerings, and a loyal customer base, make it a compelling investment option.

Stratzy's MOST Analysis:

HDFCAMC has been rated AA- by Stratzy's MOST framework, indicating medium fundamental risks. This rating is based on an assessment of HDFCAMC's management, outlook, safety, and trend. The AA- rating suggests that HDFCAMC has a strong management team, a positive outlook, a sound financial position, and a positive trend in its business. This rating indicates that HDFCAMC is a relatively low-risk investment with a good potential for future growth.

Company's Fundamentals:

HDFC AMC (NSE: HDFCAMC) is a leading asset management company in India. It has a strong track record of performance and is known for its innovative investment products. As of today, the stock PE ratio of HDFCAMC is 46.52, indicating that investors are willing to pay 46.52 times the company's earnings for a share of its stock. The PB ratio of 13.75 suggests that the company's market value is 13.75 times its book value. The dividend yield of 1.24% represents the annual dividend per share divided by the current market price of the stock, indicating the income investors can expect to receive from the company's dividend payments.

Fundamental and Technical information provided in this blog were last updated on 22 Mar, 2024

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