HDFC AMC shares jump 9% amid block deals; Abrdn Investment Management likely seller
HDFC AMC share price: The counter's 14-day relative strength index (RSI) came at 64.01. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 28.34. It has a price-to-book (P/B) value of 6.61.
- Jun 20, 2023,
- Updated Jun 20, 2023 5:41 PM IST
Shares of HDFC Asset Management Company Ltd rose sharply in Tuesday's trade after it was reported that UK asset manager Abrdn Investment (formerly Standard Life) may sell shares in the company worth up to Rs 4,126 crore (around 10.20 per cent). The sale of shares could be done at a price range of Rs 1,800 to Rs 1,892.45 per share through block deals, news agency Reuters reported, citing a news channel.
HDFC AMC's stock jumped 8.93 per cent to hit a day high of Rs 2,060 over its previous close of Rs 1,891.10. Around 2.19 crore shares changed hands today on BSE, which was way more than the two-week average volume of 23,000 shares. Turnover on the counter stood at Rs 4,099.81 crore, commanding a market capitalisation (m-cap) of Rs 43,073.87 crore.
At today's high price of Rs 2,060, the stock traded 29.13 per cent higher from its 52-week low of Rs 1,595.25, hit on March 20, 2023. Yet, the counter has lost 10.98 from its one-year high of Rs 2,314, a level seen on December 20 last year.
On technical setup, the stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 64.01. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 28.34. It has a price-to-book (P/B) value of 6.61.
Gaurav Bissa, VP, InCred Equities said, "HDFC AMC witnessed intense pressure since September 2021 with prices falling from 3150 to 1700. During this while it was seen forming lower highs and lower lows which is a characteristic of a downtrend. However, the stock has recently taken support from a descending channel pattern on the weekly charts and bounced swiftly from Rs 1600 to Rs 2000 levels. The stock is showing early signs of double bottom formation on the weekly charts suggesting a multiyear upside can be seen if it holds above the previous swing lows. Also, the stock is giving a breakout from descending trendline pattern on the weekly charts which will get confirmed on a weekly close above Rs 2050 levels which can push the stock towards the neckline of double bottom pattern placed at Rs 2300."
The scrip has an average target price of Rs 2,066.86, Trendlyne data showed, suggesting a potential upside of just 2.27 per cent. It has a one-year beta of 1.08, indicating high volatility on the counter.
In a note on June 15, BOB Capital Markets said HDFC AMC's MD & CEO Navneet Munot outlined the levers for future growth including launch of new products (including PMS and AIF) to build a holistic platform, as illustrated by the launch of two equity-oriented thematic sectorial funds and one long-duration debt fund. It also mentioned that the AMC is looking to expand physical delivery channels and enhancing the digital experience and maintaining the performance of major equity schemes in the top tier and generating alpha.
BOB Capital Markets said shares of HDFC AMC are trading at 25 times FY25E EPS, a 30 per cent discount to the long-term mean, but it continues to value it at a similar multiple for a target price of Rs 1,946. It maintained a 'Hold' on the stock as it monitors the company’s ability to regain market share, even as it stays positive on HDFC AMC's brand strength, large AUM base and robust scheme performance.
Last month, Abrdn Investment sold its entire stake in HDFC Life for Rs 2,069 crore. The UK-based management firm had sold 3.57 crore shares of HDFC Life at Rs 579.60 apiece.
Meanwhile, Indian equity benchmarks fell sharply in early deals today, dragged by banks, financials, automobile and energy stocks.
Watch: Buzzing stocks on June 20, 2023: RVNL, Concor, IIFL Securities, HDFC AMC, Timken, others
Also read: Wipro shares gain as IT firm says share buyback to open on June 22
Shares of HDFC Asset Management Company Ltd rose sharply in Tuesday's trade after it was reported that UK asset manager Abrdn Investment (formerly Standard Life) may sell shares in the company worth up to Rs 4,126 crore (around 10.20 per cent). The sale of shares could be done at a price range of Rs 1,800 to Rs 1,892.45 per share through block deals, news agency Reuters reported, citing a news channel.
HDFC AMC's stock jumped 8.93 per cent to hit a day high of Rs 2,060 over its previous close of Rs 1,891.10. Around 2.19 crore shares changed hands today on BSE, which was way more than the two-week average volume of 23,000 shares. Turnover on the counter stood at Rs 4,099.81 crore, commanding a market capitalisation (m-cap) of Rs 43,073.87 crore.
At today's high price of Rs 2,060, the stock traded 29.13 per cent higher from its 52-week low of Rs 1,595.25, hit on March 20, 2023. Yet, the counter has lost 10.98 from its one-year high of Rs 2,314, a level seen on December 20 last year.
On technical setup, the stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 64.01. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 28.34. It has a price-to-book (P/B) value of 6.61.
Gaurav Bissa, VP, InCred Equities said, "HDFC AMC witnessed intense pressure since September 2021 with prices falling from 3150 to 1700. During this while it was seen forming lower highs and lower lows which is a characteristic of a downtrend. However, the stock has recently taken support from a descending channel pattern on the weekly charts and bounced swiftly from Rs 1600 to Rs 2000 levels. The stock is showing early signs of double bottom formation on the weekly charts suggesting a multiyear upside can be seen if it holds above the previous swing lows. Also, the stock is giving a breakout from descending trendline pattern on the weekly charts which will get confirmed on a weekly close above Rs 2050 levels which can push the stock towards the neckline of double bottom pattern placed at Rs 2300."
The scrip has an average target price of Rs 2,066.86, Trendlyne data showed, suggesting a potential upside of just 2.27 per cent. It has a one-year beta of 1.08, indicating high volatility on the counter.
In a note on June 15, BOB Capital Markets said HDFC AMC's MD & CEO Navneet Munot outlined the levers for future growth including launch of new products (including PMS and AIF) to build a holistic platform, as illustrated by the launch of two equity-oriented thematic sectorial funds and one long-duration debt fund. It also mentioned that the AMC is looking to expand physical delivery channels and enhancing the digital experience and maintaining the performance of major equity schemes in the top tier and generating alpha.
BOB Capital Markets said shares of HDFC AMC are trading at 25 times FY25E EPS, a 30 per cent discount to the long-term mean, but it continues to value it at a similar multiple for a target price of Rs 1,946. It maintained a 'Hold' on the stock as it monitors the company’s ability to regain market share, even as it stays positive on HDFC AMC's brand strength, large AUM base and robust scheme performance.
Last month, Abrdn Investment sold its entire stake in HDFC Life for Rs 2,069 crore. The UK-based management firm had sold 3.57 crore shares of HDFC Life at Rs 579.60 apiece.
Meanwhile, Indian equity benchmarks fell sharply in early deals today, dragged by banks, financials, automobile and energy stocks.
Watch: Buzzing stocks on June 20, 2023: RVNL, Concor, IIFL Securities, HDFC AMC, Timken, others
Also read: Wipro shares gain as IT firm says share buyback to open on June 22