HDFC AMC- Q1 FY20 (Standalone - Unaudited)
Revenue from ops at 504.39 Crs
471.23 Crs YoY (7.01%) 486.50 Crs (3.70%) QoQ
Net Profit of 291.79 Cr
205.26 Cr YoY (41.92%) 276.17 Crs (5.34%) QoQ
EPS (in Rs.) 13.69
9.68 YoY | 12.97 QoQ
View: Strong result. YoY and QoQ revenue and profit both have increased. Net profit margin is 57.8% Vs. 43.52% in YoY which is quite impressive. The company is in the business of providing asset management services to HDFC mutual fund and portfolio management & advisory services to clients.
During the quarter ended June 30, 2019, the Company has allotted 19,435 equity shares of INR 5 each pursuant to exercise of stock options by certain employees.
The Board of Directors have proposed a final dividend of INR 12 per equity share for the year ended March 31, 2019 at its meeting held on April 26, 2019, subject to the approval of the shareholders at the ensuing Annual General Meeting. The proposed final dividend is in addition to the interim dividend of INR 12 per equity share declared by the Board of Directors on February 26, 2019. Therefore Total dividend is INR 24 per share.
ROE and ROCE is around 23% and 51% respectively and book value per share is around INR 134 per share and share is currently trading at 15x of its book value. Company is currently trading at annualized PE of around 39 which is average as per Industry benchmark. Promoter is holding around 82.7% in the company which is HDFC group. FIIs hold around 4.1% in the company. Company has very strong reserve and balance sheet and operating profit margin is around 68% and which is continuously increasing in QoQ and YoY.
Share price high 2096 and 2012 almost in same range. Company business is continuously strong on QoQ and YoY and very well reputed brand of HDFC Group since IPO company has given exceptionally well return. Long term outlook remain stable with target price of INR 2500. Short term outlook is also remain good.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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By: via @AlliesFin Serve T.ME/ALLiESFiN
