HDFC AMC shares reverse losses after hitting fresh 52-week low – here’s what led to the fall?

HDFC Asset Management Company (AMC) shares reversed the trend and gained around 6 per cent from its day’s low level on the BSE during Monday’s session. 

The stock, earlier in the day, touched a fresh 52-week low of Rs 1,595.25 per share after nearly 51 lakh shares or 2.4 percent of the overall equity exchanged hands in multiple block deals today. 

The deal was valued at Rs 812 crore and saw shares being exchanged at an average price of Rs 1,602 per share, as per the exchange data. The buyers and sellers of HDFC AMC – a mutual fund subsidiary of the HDFC group – bulk deal is yet to be ascertained. 

At the market close, the counter ended flat with a negative bias at Rs 1,676.05 per share on the BSE as compared to Friday’s close of Rs 1676.55 apiece.  

Brokerage upbeat on HDFC AMC 

HDFC AMC stock is currently trading at 24x FY25E EPS, and is valued at an unchanged 28x FY25E EPS, translating to a target price of Rs 2,310 per share, BoB Caps, a domestic brokerage firm, said, while upgrading to a ‘buy’ rating from ‘hold’ earlier, mainly on reclaiming the market share. 

The brokerage initiated coverage on HDFC AMC on key moats in the form of its brand strength, large AUM base, and retail-oriented strategy. 

HDFC AMC share price history 

HDFC AMC shares in the last one year have corrected over 22 per cent in the last one year against flat BSE Sensex and it has slipped by 23 per cent year-to-date as compared to a nearly six per cent drop in the benchmark index. 

HDFC Mutual Fund is the leading mutual fund investment company in India. It has 80 thousand empaneled distributors, including MFDs, NDs & Banks. The company has a network across 200 cities 228 investor service centers across 200 cities, and 1,187 employees. 

HDFC – HDFC Bank Merger 

The National Company Law Tribunal (NCLT) on Friday approved the reverse merger of mortgage leader HDFC and its subsidiaries with the group's banking arm HDFC Bank, announced last April. 

With this, the biggest merger in the history of India Inc has moved one step closer as the only pending approvals are from the Reserve Bank, which though has given the in-principal approval to the US D40 billion mega amalgamation. 

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