Here's Why I Think HDFC Asset Management (NSE:HDFCAMC) Is An Interesting Stock
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Indian (NIFTY) Capital Markets Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies280
- 7D-3.4%
- 3M2.6%
- 1Y43.3%
- YTD28.8%
Over the last 7 days, the Capital Markets industry has dropped 3.4%, driven by declines in HDFC Asset Management and Nippon Life India Asset Management of 3.4% and 6.7%, respectively. This takes the industry's 12 month performance to a gain of 43%.
Industry Valuation and Performance
Has the Indian Capital Markets Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | ₹3.3t | ₹950.2b | ₹154.7b | 15x |
| Tue, 26 Oct 2021 | ₹3.4t | ₹833.9b | ₹138.2b | 17.2x |
| Thu, 23 Sep 2021 | ₹3.3t | ₹816.9b | ₹131.5b | 16.3x |
| Sat, 21 Aug 2021 | ₹3.0t | ₹827.1b | ₹131.4b | 15.8x |
| Sat, 05 Jun 2021 | ₹2.7t | ₹731.6b | ₹116.0b | 15.8x |
| Tue, 09 Mar 2021 | ₹2.5t | ₹578.1b | ₹49.2b | 14.1x |
| Mon, 30 Nov 2020 | ₹2.2t | ₹542.2b | ₹35.9b | 16x |
| Thu, 03 Sep 2020 | ₹2.0t | ₹497.5b | ₹29.9b | 15.8x |
| Sun, 07 Jun 2020 | ₹1.6t | ₹555.3b | ₹31.3b | 19.4x |
| Sat, 29 Feb 2020 | ₹2.2t | ₹744.1b | ₹43.5b | 13.4x |
| Tue, 03 Dec 2019 | ₹2.2t | ₹735.2b | ₹37.6b | 12.2x |
| Fri, 06 Sep 2019 | ₹1.7t | ₹743.6b | ₹48.2b | 13.2x |
| Mon, 10 Jun 2019 | ₹1.8t | ₹616.3b | ₹70.7b | 23.1x |
| Sun, 03 Mar 2019 | ₹1.5t | ₹645.9b | ₹57.1b | 13.4x |
| Wed, 05 Dec 2018 | ₹1.6t | ₹611.1b | ₹58.8b | 16.2x |
PE Ratio
16.2x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 15.5x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Capital Markets industry have grown 38% per year over the last three years, and revenues for these companies have grown 16% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Indian Capital Markets industry?
| Diversified Capital Markets | -0.13% | |
| Asset Management | -3.21% | |
| Investment Banking and Brokerage | -3.66% | |
| Financial Exchanges and Data | -4.51% | |
Industry PE: Investors are most optimistic about the Financial Exchanges and Data industry which is trading above its 3-year average PE ratio of 30.3x. However analysts expect its future annual earnings growth (13%) to be largely in line with prior year's earnings growth, so the market might believe analysts are underestimating its future growth since investors are willing to pay a bigger premium today. Meanwhile, investors are most pessimistic about the Diversified Capital Markets industry, which is trading below its 3-year average of 115x.
Forecasted Growth: Analysts are most optimistic on the Asset Management industry, expecting annual earnings growth of 13% over the next 5 years. However this is lower than its past earnings growth rate of 91% per year. Meanwhile, the Diversified Capital Markets industry is expected to see its earnings decline by 29% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| ABSLAMC Aditya Birla Sun Life AMC | 1.5%+₹2.5b | n/a | PE27.1x | |
| 532624 Jindal Photo | 27.6%+₹1.0b | 3,248.6% | PE0.9x | |
| 536773 Jindal Poly Investment and Finance | 27.6%+₹955.5m | 3,152.7% | n/a | |
| 531400 Almondz Global Securities | 12.6%+₹359.8m | 673.6% | PE13.2x | |
| 539662 BFL Asset Finvest | 27.0%+₹307.6m | 77.4% | PE146.1x |
