HDFC AMC share price: The 14-day relative strength index (RSI) for the stock came in at 73. When the number is below 30, it is said to be oversold, and when it is above 70, it is said to be overbought. The stock of the company has a price-to-earnings ratio (P/E) of 31.40. The price-to-book (P/B) ratio for this item is 3.81.
On Friday, shares of HDFC Asset Management Company Ltd went up by a lot. The stock went up 12.53 percent today, from its previous close of Rs 2,050.20 to its day high of Rs 2,307.15. This week, there has been a lot of talk about Housing Development Finance Corp and the other stocks in the group. This is because it was reported that HDFC and HDFC Bank are working to finish their merger by July 1 and may set July 13 as the record date for swapping shares.
HDFC AMC has gone up 17.67% in the last month, and it has gone up 4.72 % so far this year. About 3.33 million shares changed hands on BSE today, which was less than the average of 22.36 million shares over the past two weeks. The counter made a total of Rs 75.38 crore in sales, giving it a market capitalization (m-cap) of Rs 48,919.73 crore.
At its 52-week low of Rs 1,595.25 on March 20, 2023, the stock was worth 44.63 percent less than it was at its 52-day high of Rs 2,307.15 today. Still, the price is only 0.30 percent lower than its one-year high of Rs 2,314, which was reached on December 20, 2017.
An analyst said that the recent Sebi (Securities and Exchange Board of India) board meeting, where the planned reduction in expense ratio was put off, may have something to do with today’s sharp rise.
“The recent Sebi board meeting, where the suggested decrease in expense ratio was put off, may have something to do with the rise. According to Ravi Singh, vice president and head of research at Share India, “the market expects the profitability of these asset management companies to likely stay steady in the near future.” This has led to a rise in the demand for AMC stocks.
This month, it was said that Abrdn Investment, formerly known as Standard Life, a UK asset manager, sold shares in the company worth up to Rs 4,126 crore, or about 10.20 per cent. A news station told Reuters that the sale was likely done through block deals at a price between Rs 1,800 and Rs 1,892.45 per share.
In the March 2023 quarter (Q4 FY23), the company’s independent net profit went from Rs 343 crore in the same quarter last year (Q4 FY22) to Rs 376 crore, an increase of 10%. Also, a dividend of Rs. 48 per stock share was announced for FY23. On June 9, the stock stopped paying dividends. On July 26, the bonus would be paid.
The counter’s relative strength index (RSI) for the past 14 days was 73. When the number is below 30, it is said to be oversold, and when it is above 70, it is said to be overbought. The stock of the company has a price-to-earnings ratio (P/E) of 31.40. The price-to-book (P/B) ratio for this item is 3.81.
The stock’s one-year beta is 1.12, which means it is very volatile. At Rs 2,150, the counter could get some help. The price looks bullish, which means there might be a correction soon. “If it stays and settles where it is now, it could reach Rs 2,500,” said Singh of Share India.
On the daily charts, HDFC AMC is bullish but also overbought, with Rs 2,430 serving as the next barrier. AR Ramachandran from Tips2trades said, “Trend will turn bearish only if the daily support of Rs 2,150 is broken.”
“Investors with a medium- to long-term view can buy at the market price of Rs 2,270 with an average view, if necessary, up to Rs 2,000. The target expectation could be anywhere from Rs 2,400 to Rs 3000. VLA Ambala, a Research Analyst at Stock Market Today, said, “Set a strict stop loss at Rs 1,860.”
At last check, shares of HDFC and HDFC Bank were up 0.83 percent and 0.93 percent, respectively. HDFC Life Insurance Company, on the other hand, fell 0.92 percent.
In the meantime, Indian stock benchmarks went up in late trading today to reach their new all-time highs. This was because investors were feeling better after strong economic data from the US eased fears of a slowdown. The gains in technology, banks, financials, and car stocks led to gains in the domestic indices.