HDFC AMC Q2 Results Review - Market Rally Improves Outcomes For Now: Yes Securities

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.HDFC Asset Management Company Ltd.'s revenue from operations at Rs 6,431 million was up 11.9%/18.1% QoQ/YoY, compared with growth in quarterly average assets under management of 8%/22% QoQ/YoY.Share of equity in AUM (including hybrid funds) at 57.6% was up 340 bps QoQ and 570 bps YoY.Share of B-30 in AUM at 18.2% was up 100 bps QoQ and 70 bps YoY.Share of Banks, mutual fund distributors, national distributors and direct channel was 13.1%, 38.6%, 24.6% and 23.7%, respectively in Equity QAAUM.HDFC AMC's operating profit margin for the quarter, at 75.0%, was up 40 bps QoQ and 72 bps YoY..The calculated overall revenue yield has risen ~2 basis points QoQ to 49 bps, driven by favorable changes in segment mix: The share of equity funds has risen 340 bps QoQ to 57.6%. The yield in the equity business was 68 bps in the sequentially previous quarter whereas this has declined to 67 bps in Q2. The reasons for decline in yield include flow yield being lower than book yield and increased assets under management causing funds to move past TER slab thresholds.Last quarter, net inflows into debt funds were positive but were concentrated at the short-end: The debt fund market share has improved on QoQ basis but, optically, declined on YoY basis. The YoY decline is on account of not participating in debt index funds and one should not read too much into this. We maintain ‘Neutral’ rating on HDFC AMC with a revised price target of Rs 2,900: We value HDFC AMC at 33 times FY25 price/earning, with the implied price/book being 10.1 times..Click on the attachment to read the full report:.HDFC AMC Chief Navneet Munot Named As AMFI Chairperson.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

HDFC AMC Q2 Results Review - Market Rally Improves Outcomes For Now: Yes Securities

Last quarter, net inflows into debt funds were positive but were concentrated at the short-end.

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HDFC AMC Q2 Results Review - Market Rally Improves Outcomes For Now: Yes Securities

Last quarter, net inflows into debt funds were positive but were concentrated at the short-end.

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