India's HDFC AMC gains after JP Morgan upgrades stock, sets Street-high PT

Aditya Birla Sun Life Amc

16/04/2024 06:57

** Shares of HDFC Asset Management Company  HDFA.NS  rise
2.25% to 3,726.70 rupees
    ** JP Morgan upgrades the stock to "overweight" from
"neutral", raises PT to Street-high of 4,450 rupees
    ** The new PT implies an upside of 22% in nine months over
its last close
    ** Brokerage values stock at 38 times 12-month forward
earnings
    ** HDFA is trading at trailing twelve months (TTM) P/E of
43.81, compared to Aditya Birla Sun Life  ADIE.NS , Nippon Life
India Asset Management Company, and UTI Asset Management Company
 UTIA.NS , whose TTM P/E is in between 16-35 as per LSEG data
    ** JP Morgan expects HDFA to benefit from higher fund
inflows
    ** Adds risk around regulations is largely mitigated, sees
stable margins on the back of 25% rise in assets under
management in FY24
    ** The avg recommendation of 19 analysts tracking HDFA is
equivalent to "buy"; median TP, excluding JP Morgan's, is 3,440
rupees - LSEG data
    ** HDFA shares up 16.6% in 2024 so far, compared to 2% drop
in financial services index  .NIFTYFIN 

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))