IIFL Securities's Stock Idea: Buy Hdfc Amc with Target Rs 4700

IIFL Securities has issued a buy recommendation for HDFC AMC, with a target price of Rs 4700. The current market price of HDFC AMC is Rs 4575.5. This represents a potential upside of 5.33%. IIFL Securities believes that HDFC AMC is well-positioned to benefit from the growing mutual fund industry in India. The company has a strong track record of performance and a wide distribution network.

About Hdfc Amc:

Hdfc Amc is listed on National Stock Exchange of India & Bombay Stock Exchange

52 Week Price Trend:

HDFC AMC (NSE: HDFCAMC) has witnessed significant growth in its share price, currently trading at Rs 4575.5. This represents a notable surge compared to its 52-week low of Rs 1589.5. The stock had earlier reached a 52-week high of Rs 3910.35. HDFC AMC's strong performance can be attributed to factors such as a robust mutual fund industry, increasing investor appetite for equity investments, and the company's diversified product offerings. The company's focus on technology and digitization has also contributed to its growth prospects.

Stratzy's MOST Analysis:

HDFC Asset Management Company (HDFCAMC) has received an AA- rating from Stratzy's MOST Framework, indicating medium fundamental risks. This rating is based on an assessment of HDFCAMC's Management, Outlook, Safety, and Trend. The company's strong management team, positive outlook, and healthy financial position contribute to its favorable rating. While HDFCAMC exhibits some concerns regarding its trend, overall, the AA- rating suggests that it is a relatively low-risk investment.

Company's Fundamentals:

HDFC AMC (HDFCAMC), listed on NSE, indicates a Stock PE ratio of 46.52. This means that investors are willing to pay Rs.46.52 for every rupee of earnings per share. The PB Ratio of 13.75 suggests that the company's market value is 13.75 times its book value, implying a premium valuation. On the other hand, the Dividend Yield of 1.24% indicates the annual dividend income as a percentage of the current market price, providing investors with a modest income stream.

Fundamental and Technical information provided in this blog were last updated on 15 Oct, 2024

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