HDFC Asset Management Company Ltd. share price target

Higher equity share drove robust QAAUM growth of 22% YoY in Q2; topline growth strong at 18%

As of June 30, 2023, the QAAUM stood at INR 4,857 Bn, reflecting a growth of 17.0% YoY/ 8.0% QoQ led by strong inflows in the equity segment on account of positive market movement as well as improved performance of the funds across all categories.

HDFC AMC reported an EBITDA of INR 4.3bn, up 4% QoQ (highest in last 21 quarters wherein the average EBITDA was ~INR 4bn). There is strong improvement in fund performance which has led to superior business metrics such as gain in equity market share, unique investor share, and gain in flow market share in equity segment across channels.

Q1 AUM growth robust at 17% YoY with debt seeing inflows after several quarters of outflow; revenue and EBITDA impressive

The mutual fund (MF) industry had a decent year, with AUM crossing the INR 40 Tn milestone. This accomplishment highlights the industry’s robust performance, showcasing nearly a doubling of AUM over the past five years.

Product launches, top-tier scheme outperformance and phygital delivery channels remain key growth levers

As of March 31, 2023, the QAAUM stood at INR 4,481 Bn, reflecting a growth of 4.4% YoY/ 0.4% QoQ led by healthy inflows in the equity-oriented funds. The equity-oriented fund AUM stood at INR 2,445 Bn, an increase of 18.2% YoY/ 2.2% QoQ, contributing 54.4% to the overall QAAUM.