NSEI:HDFCAMC

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Executive Summary

HDFC Asset Management Company Limited is a publically owned investment manager.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has HDFC Asset Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HDFCAMC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

HDFCAMC

2.7%

IN Capital Markets

2.1%

IN Market


1 Year Return

6.3%

HDFCAMC

14.0%

IN Capital Markets

2.4%

IN Market

Return vs Industry: HDFCAMC underperformed the Indian Capital Markets industry which returned 14% over the past year.

Return vs Market: HDFCAMC exceeded the Indian Market which returned 2.4% over the past year.


Shareholder returns

HDFCAMCIndustryMarket
7 Day-2.1%2.7%2.1%
30 Day-4.8%4.5%4.5%
90 Day-9.6%31.7%21.8%
1 Year7.5%6.3%15.6%14.0%4.3%2.4%
3 Yearn/a-29.9%-32.7%5.2%0.2%
5 Yearn/a28.7%19.2%29.7%20.0%

Price Volatility Vs. Market

How volatile is HDFC Asset Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HDFC Asset Management undervalued compared to its fair value and its price relative to the market?

39.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDFCAMC (₹2369) is trading above our estimate of fair value (₹707.34)

Significantly Below Fair Value: HDFCAMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HDFCAMC is poor value based on its PE Ratio (39.6x) compared to the IN Capital Markets industry average (19.1x).

PE vs Market: HDFCAMC is poor value based on its PE Ratio (39.6x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: HDFCAMC is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: HDFCAMC is overvalued based on its PB Ratio (12.5x) compared to the IN Capital Markets industry average (0.5x).

Future Growth

How is HDFC Asset Management forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDFCAMC's forecast earnings growth (11.5% per year) is above the savings rate (7.2%).

Earnings vs Market: HDFCAMC's earnings (11.5% per year) are forecast to grow slower than the Indian market (23.5% per year).

High Growth Earnings: HDFCAMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: HDFCAMC's revenue (13.5% per year) is forecast to grow faster than the Indian market (10% per year).

High Growth Revenue: HDFCAMC's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDFCAMC's Return on Equity is forecast to be high in 3 years time (30%)

Past Performance

How has HDFC Asset Management performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDFCAMC has high quality earnings.

Growing Profit Margin: HDFCAMC's current net profit margins (61.2%) are higher than last year (47.4%).


Past Earnings Growth Analysis

Earnings Trend: HDFCAMC's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: HDFCAMC's earnings growth over the past year (24.9%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: HDFCAMC earnings growth over the past year (24.9%) exceeded the Capital Markets industry -11.1%.


Return on Equity

High ROE: HDFCAMC's Return on Equity (31.6%) is considered high.

Financial Health

How is HDFC Asset Management's financial position?


Financial Position Analysis

Short Term Liabilities: HDFCAMC's short term assets (₹36.0B) exceed its short term liabilities (₹1.8B).

Long Term Liabilities: HDFCAMC's short term assets (₹36.0B) exceed its long term liabilities (₹952.0M).


Debt to Equity History and Analysis

Debt Level: HDFCAMC is debt free.

Reducing Debt: HDFCAMC had no debt 5 years ago.

Debt Coverage: HDFCAMC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HDFCAMC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Dividend

What is HDFC Asset Management current dividend yield, its reliability and sustainability?

1.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HDFCAMC's dividend (1.18%) is higher than the bottom 25% of dividend payers in the Indian market (0.63%).

High Dividend: HDFCAMC's dividend (1.18%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HDFCAMC has been paying a dividend for less than 10 years.

Growing Dividend: HDFCAMC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), HDFCAMC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HDFCAMC's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average board tenure


CEO

Milind Barve (63 yo)

no data

Tenure

₹64,500,000

Compensation

Mr. Milind Gajanan Barve serves as the Managing Director of HDFC Asset Management Company Ltd. Mr. Barve joined the firm in July 2002. Previously, he served as the General Manager of Treasury at HDFC Ltd. ...


CEO Compensation Analysis

Compensation vs Market: Milind's total compensation ($USD859.74K) is below average for companies of similar size in the Indian market ($USD1.34M).

Compensation vs Earnings: Milind's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Milind Barve
MD & Directorno data₹64.50m0.49%
₹ 2.5b
Deepak Parekh
Chairman of the Boardno data₹4.00mno data
Renu Karnad
Non-Executive Director20.08yrs₹2.90m0.079%
₹ 398.7m
Keki Mistry
Non-Executive Directorno data₹4.20m0.079%
₹ 398.7m
Norman Skeoch
Non-Executive Director14.83yrsno datano data
James Aird
Non-Executive Directorno datano datano data
Dhruv Kaji
Independent Director1.83yrs₹4.60mno data
Jairaj Purandare
Independent Director1.83yrs₹3.90mno data
Roshni Malhotra
Additional Independent Women Director1.33yrs₹2.40mno data
Parag Shah
Independent Director1.58yrs₹3.00mno data
Sanjay Bhandarkar
Independent Director1.83yrs₹4.70mno data
Shashi Sharma
Independent Director0.83yr₹1.00mno data

1.8yrs

Average Tenure

63yo

Average Age

Experienced Board: HDFCAMC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HDFCAMC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HDFC Asset Management Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HDFC Asset Management Company Limited
  • Ticker: HDFCAMC
  • Exchange: NSEI
  • Founded: 1999
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: ₹504.227b
  • Shares outstanding: 212.84m
  • Website: https://www.hdfcfund.com

Number of Employees


Location

  • HDFC Asset Management Company Limited
  • HDFC House, H. T. Parekh Marg
  • 2nd Floor
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
541729BSE (Mumbai Stock Exchange)INR5ININRAug 2018
541729BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2018
HDFCAMCNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2018

Biography

HDFC Asset Management Company Limited is a publically owned investment manager. The firm launches and manages equity, fixed income, and balanced mutual funds for its clients. It manages equity, fixed incom ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 12:44
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.