Hello and welcome back to one more article where the intention is to analyze HDFC Asset management share price in the best possible way through Business, Fundamental and Technical analysis.
So, the stock for today is HDFC Asset management company Ltd.
Now let’s deep dive in the business of HDFC Asset management company Ltd.
Table of Contents
BUSINESS ANALYSIS
HDFC Asset management company Ltd is one of India’s largest and most profitable mutual fund manager with ₹ 4.1trillion in assets under management.
They were set up as a joint venture between Housing development finance corporation limited (HDFC) and Standard life investment limited (SLI).
HDFC Asset management company is a part of HDFC group, this group has its presence in Housing finance, Banking, Real estate funds, Asset management, Life and non life insurance.
The company has been providing life insurance since the year 2000, through its subsidiary HDFC standard Life insurance company limited.
The company also offers general insurance products such as motor, health, travel, home and personal accident in the retail segment which accounts for 47% of its total business.
And it is one of the largest providers of housing loans in India.
The business of HDFC Asset management company Ltd is superb and now let’s understand the financial aspect of this company.
FINANCIAL ANALYSIS
The Market Capitalization of HDFC Asset management company Ltd is Rs 65,933Cr.
The price to earnings ratio of the stock is 48.2 which is greater than the industry price to earnings ratio of 25.8.
The value of P/E is greater but doesn’t mean the stock is underperforming and did not majorly affect the investor’s interest.
The company has a very good return on capital employed of 39.9% which definitely increases their profits year by year.
The HDFC Asset management company Ltd has a great return on equity of 30.1% which is awesome, and a decent amount of return is attained by the investors.
The company has a debt to equity ratio of 0.00 which shows that the company does not have any loan and they are using their cash for company development.
Company has a good profit growth of 22.64% CAGR which has been seen from the past 5 years.
Company is also paying a healthy dividend of 52.21%.
From the last 4 quarters (Sep 2020, Dec 2020, Mar 2021, Jun 2021) the sales have increased from Rs 456 Cr to Rs 507 Cr.
From the last 4 quarters the operating profit has also increased from Rs 366 Cr to Rs 381 Cr.
The net profit has also increased from Rs 316 Cr which was in March 2021 to Rs 345 Cr in June 2021 quarter.
The earning per share value of HDFC Asset management company Ltd is Rs 16.21.
The balance sheet of HDFC Asset management company Ltd is quite superb with zero borrowings.
The share capital of the company has been the same from the last 3 years.
Promoters have a holding of 73.88% till June 2021 quarter.
The Flls have a 9.14% holding.
The Dlls have a 6.57% holding while only 10.41% is with the public.
The company is in safe hands and their growth is marvelous.
This is a brief overview of the financials of the HDFC Asset management company Ltd which shows their dominance in their respective market.
TECHNICAL ANALYSIS
We tend to use chart pattern analysis as well as technical indicators for doing the technical analysis of the stock. This template helps us in entering and exiting the stock at the appropriate value.
Now let’s see the chart pattern formed in the stock.
CHART PATTERN ANALYSIS
If we give a closer look on the chart in a daily timeframe, we would be able to see a reverse head and shoulder pattern formation.
The pattern is formed, and a breakout is also achieved. There will be a retest on the resistance level from where the stock would show an uptrend.
A high probability of achieving 13% target is visible from the chart analysis.
The HDFC Asset management share price on 18th July 2021 is Rs. 3094 which would definitely vary in the upcoming future.
The high price of the stock in the last 1 year was Rs 3358.
MOVING AVERAGES
In HDFC Asset management share price analysis we are using 9 days and 21 days moving averages.
For Long term investing one should use a 200 days moving average which helps in understanding the trend of the stock in the long run.
The 9 days moving average has crossed the 21 days moving average and a big green candle is visible due to this phenomenon in a daily time frame.
The red line indicates the 9 days moving average while blue shows the 21 days moving average.
SUPER TREND
Buying and selling indications are given by the super trend indicator.
One should not decide based on the super trend instead should focus on the other aspects and make a decision wisely.
In the above chart of HDFC Asset management share price, a daily time frame is taken to show the super trend analysis.
Alerts of buying and selling can be increased by reducing the timeframe and predict the correct entry and exit in the stock.
DISCLAIMER:
We just intent to share this analysis in the form of educational purpose. Please don’t consider this article as an advice or recommendation. Through this platform we are just trying to enhance and sharpen your stock analyzing skills.
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