HDFC AMC Q3 Results Review - Yes Securities Recommends 'Add' On The Stock; Sees 16% Upside; Here's Why

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Yes Securities Report

HDFC Asset Management Company Ltd.'s revenue yield inched up on sequential basis: Overall calculated revenue yield has inched up 1 bp QoQ to 47 bps in Q3, despite share of equity in total AUM declining 80 bps QoQ.

While there was no incremental change to distributor commission payout, some of the impact of changes in Q2 spilled over into Q3.

Operating Expenses – While expenses were under control for the quarter, management guided for reasonable growth for the same:

The other operating expense for the quarter Rs 741 million, down by -14.4% QoQ but up by 7.2% YoY. Expenses for the quarter were lower due to lack of NFOs and lower CSR expenses. Management guides for overall cost to rise at 12-15%.

We maintain ‘Add’ rating on HDFC AMC with a revised price target of Rs 4485.

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