HDFCAMC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.4
| Stock Code | HDFCAMC | Market Cap | 1,16,804 Cr. | Current Price | 2,723 ₹ | High / Low | 2,967 ₹ |
| Stock P/E | 40.6 | Book Value | 181 ₹ | Dividend Yield | 1.65 % | ROCE | 43.3 % |
| ROE | 32.4 % | Face Value | 5.00 ₹ | DMA 50 | 2,602 ₹ | DMA 200 | 2,565 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.77 % | PAT Qtr | 770 Cr. | PAT Prev Qtr | 718 Cr. |
| RSI | 62.6 | MACD | -0.95 | Volume | 32,05,620 | Avg Vol 1Wk | 17,96,907 |
| Low price | 1,763 ₹ | High price | 2,967 ₹ | PEG Ratio | 1.94 | Debt to equity | 0.00 |
| 52w Index | 79.7 % | Qtr Profit Var | 20.0 % | EPS | 67.2 ₹ | Industry PE | 26.6 |
📊 HDFCAMC shows strong fundamentals with high ROCE and ROE, zero debt, and consistent profit growth. However, the stock is trading at a premium valuation compared to the industry PE. The RSI at 62.6 suggests the stock is nearing overbought territory, which may limit immediate upside. The optimal entry price would be around ₹2,600–₹2,620, near the 50 DMA support. If already holding, consider exiting around ₹2,900–₹2,940, close to the recent high resistance zone.
✅ Positive
- High ROCE (43.3%) and ROE (32.4%) indicate strong efficiency and profitability.
- Debt-to-equity ratio of 0.00 shows excellent financial health.
- Quarterly PAT growth from ₹718 Cr. to ₹770 Cr. reflects solid earnings momentum.
- EPS of ₹67.2 supports strong earnings visibility.
- Trading volume significantly above weekly average, showing strong investor interest.
⚠️ Limitation
- Stock P/E (40.6) is much higher than industry PE (26.6), indicating overvaluation.
- Dividend yield of 1.65% is relatively modest compared to peers.
- RSI at 62.6 suggests limited short-term upside due to overbought conditions.
- MACD (-0.95) indicates weak momentum in the near term.
📉 Company Negative News
- Decline in FII holdings (-0.70%) shows reduced foreign investor confidence.
- Premium valuation may deter new investors and limit upside potential.
📈 Company Positive News
- Strong quarterly profit growth with 20% variation.
- Consistent EPS growth supports long-term investor confidence.
- DII holdings increased (+0.77%), showing strong domestic institutional support.
🏭 Industry
- Asset management industry benefits from rising retail participation in mutual funds.
- Industry PE at 26.6 suggests peers are trading at more reasonable valuations.
- Long-term growth outlook remains strong due to financialization of savings in India.
🔎 Conclusion
HDFCAMC is a fundamentally strong company with zero debt, high returns, and consistent profit growth. However, its high valuation compared to industry peers and overbought RSI levels suggest caution. For swing trading, entry near ₹2,600–₹2,620 is favorable, with an exit target around ₹2,900–₹2,940. Strong fundamentals make it a good candidate for swing trades, but short-term upside may be capped due to valuation concerns.