HDFCAMC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.5

📊 Core Financials Breakdown

Profitability

ROE: 32.4% and ROCE: 43.3% — exceptional returns, signaling efficient capital deployment and strong operational performance.

EPS: ₹122 — robust earnings base, with PAT rising 23.8% QoQ to ₹748 Cr.

Dividend Yield: 1.54% — consistent and healthy, appealing to long-term income investors.

Balance Sheet & Leverage

Debt-to-Equity: 0.00 — debt-free, a major strength in financial services.

Book Value: ₹380 — implies a P/B ratio of ~15.4, high but justified by premium profitability and brand strength.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 48.0 Well above industry average (24.6) — priced for growth

PEG Ratio 2.30 Slightly expensive — growth expectations are high

Intrinsic Value ~₹5,400–₹5,600 CMP is slightly above fair value zone

Valuation is rich, but supported by strong earnings momentum and market leadership.

🏦 Business Model & Competitive Edge

Sector: Asset Management — mutual funds, portfolio management, and advisory services.

Strengths

Market leader with ~12.8% AUM share and strong SIP inflows.

Backed by HDFC Bank, India’s largest private sector bank.

High operating margins (~80%) and consistent dividend payout (~75.6%).

FII holding up (+1.46%) — strong foreign investor confidence.

Challenges

DII holding down (−1.35%) — some domestic caution.

PEG ratio suggests growth may be priced in.

RSI at 61.5 — approaching overbought zone.

📉 Technicals & Entry Zone

Current Price: ₹5,850

DMA 50: ₹5,546 | DMA 200: ₹4,846 — bullish trend intact

MACD: Strongly positive — momentum accelerating

📌 Suggested Entry Zone: ₹5,400–₹5,600

A dip near the 50 DMA or intrinsic value would offer a better margin of safety.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, brand equity, and zero debt make HDFCAMC a high-quality long-term asset.

Accumulate on dips: Ideal for investors seeking exposure to India’s growing mutual fund industry and financial inclusion wave.

Brokerages like Nuvama and Antique have raised their targets to ₹6,530 and ₹6,000 respectively, citing strong SIP-led growth and stable equity flows

1

2

3

. Let me know if you'd like a peer comparison with Nippon AMC or UTI AMC.

1

The Economic Times

2

The Financial Express

3

stockanalysis.com

Edit in a page