HDFC AMC - Strong Franchise In A Growth Industry: ICICI Securities Initiates Coverage
A coin is dropped into a piggy bank in this arranged photograph. (Photographer: Ron Antonelli/Bloomberg)

HDFC AMC - Strong Franchise In A Growth Industry: ICICI Securities Initiates Coverage

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

With 14.2%/13.7% total/equity market share as of nine months FY21, industry-leading profitability at 38 basis points of average assets under management as at nine months FY21, strong brand and well-entrenched distribution, HDFC Asset Management Company Ltd. is among the better plays on Indian AUM growth.

We estimate the company to generate ~10% Ebitda (ex-other income) compound annual growth rate between FY20-FY23E with return on equity of 30% and free cash flow/dividend yield of 3.3/1.2%.

Diversification in investment style and induction of new fund managers as well as Managing Director are near term change agents which can positively impact fund performance/flows.

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ICICI Securities HDFC AMC IC.pdf

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