BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
HDFC Asset Management Company Ltd. reported a steady performance in the current scenario. Recovery in equities led to a revival in asset under management (AUM). However, a decline in market share remains a drag. Recognition of full impact of volatility in Q1 FY21 led to a decline in topline offset by lower opex and higher other income. Industry AUM increased to Rs 25.5 lakh crore as of June 2020 compared to Rs 22.3 lakh crore as of March 2020, largely led by a pick-up in equity markets. Equity related AUM grew from Rs 8.3 lakh crore in March 2020 to Rs 9.8 lakh crore. However, proportion of equity AUM stayed broadly flat at 38%.
Debt, liquid schemes saw healthy traction at approximately 4%, approximately 19% QoQ increase to Rs 8.1 lakh crore, Rs 4.9 lakh crore, respectively. Systematic investment plan (SIP) inflows dipped 8.1% QoQ to Rs 7900 crore, though SIP accounts were a tad up 3.5% QoQ to Rs 3.2 crore. HDFC AMC's AUM recovered to Rs 3,57500 crore, up 12% QoQ, amid recent upswing in equity markets. Equity AUM rose 17% QoQ (industry growth rate 18%) to Rs 1.4 lakh crore. Non-equity AUM remained broadly flattish at approximately Rs 2 lakh crore.
HDFC AMC witnessed a market share dip of approximately 30 basis points QoQ on an overall basis to 14%. Equity AUM market share also declined approximately 40 basis points QoQ to 14.3%. In line with industry trend, SIP inflows witnessed a dip to Rs 960 crore from Rs 1130 crore in March 2020 and Rs 1270 crore in June 2019.
The company continued to maintain its overall leadership in individual asset with market share of 15.7%. Proportion of AUM from direct source has been on the rise with approximately 980 basis points YoY improvement to 49% in AUM and approximately160 basis points YoY to 19.3% in equity oriented AUM.
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