Investment Pick - HDFC AMC Ltd
* HDFC AMC reported muted set of numbers in Q2FY21 which was largely on expected lines. Its mutual fund AUM declined by 0.3% YoY as equity-oriented AUM was down by 10.8% YoY. However, sequentially, the AUM registered a decent growth of 5.4% led by 11.1% growth in equity-oriented active AUM reflecting market performance and a 22.2% growth in Debt AUM.
* We believe with strong long term industry tailwinds coupled with HDFC AMC’s strong brand equity, diversified distribution model, superior return ratios, strong cash flow generation and high dividend payout ratio makes it one of our preferred pick in the sector. Hence, we maintain a Buy on the stock with a target price of Rs. 2,993.
Buy HDFC AMC Ltd @ 9-12 Months CMP 2,262.35 TGT 2,993
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