The 14-day relative strength index (RSI) for HDFC AMC shares came in at 64.01. A rating less than 30 is considered oversold, while one more than 70 is considered overbought. The stock of the company has a price-to-earnings ratio (P/E) of 28.34. The price-to-book (P/B) ratio for this item is 6.61.
On Tuesday, shares of HDFC Asset Management Company Ltd went up strongly after it was said that UK asset manager Abrdn Investment (formerly Standard Life) may sell up to Rs 4,126 crore worth of shares in the company. This is about 10.20% of the company. Block deals could be used to sell shares for between Rs 1,800 and Rs 1,892.45 per share, Reuters reported, citing a news station.
The stock of HDFC AMC rose 8.93% from its previous close of Rs 1,891.10 to a day high of Rs 2,060. Around 2.19 crore shares were traded on BSE today, which was a lot more than the average of 23,000 shares traded every two weeks. With a market capitalization (m-cap) of Rs 43,073.87 crore, the stock had a turnover of Rs 4,099.81 crore.
At Rs 2,060, the stock was 29.13% higher than its 52-week low of Rs 1,595.25, which happened on March 20, 2023. Still, the number is 10.98 points lower than its all-time high of Rs 2,314 on December 20 of last year.
Technically, the stock was last trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The relative strength index (RSI) for the counter was 64.01 after 14 days. A rating less than 30 is considered oversold, while one more than 70 is considered overbought. The stock of the company has a price-to-earnings ratio (P/E) of 28.34. The price-to-book (P/B) ratio for this item is 6.61.
Gaurav Bissa, the vice president of InCred Equities, said, “HDFC AMC has been under a lot of pressure since September 2021, when prices fell from 3,150 to 1,700.” During this time, it had lower highs and lower lows, which is a sign of a downward trend. But recently, a declining channel pattern on the weekly charts has helped the stock, and it quickly went from Rs 1600 to Rs 2000. On the weekly charts, the stock is showing early signs of a double bottom. This means that if it stays above the previous swing lows, it could go up for many years. Also, the stock is breaking out of a pattern of falling trendlines on weekly charts. This will be confirmed when the stock closes for the week above Rs 2050. This could push the stock towards the collar of a double-bottom pattern, which is at Rs 2300.
Trendlyne data showed that the average goal price for the scrip was Rs 2,066.86. This means that the stock could only go up by 2.27 per cent. Its one-year beta is 1.08, which means that the counter is very volatile.
In a note released on June 15, BOB Capital Markets said that HDFC AMC’s MD & CEO Navneet Munot laid out the company’s plans for future growth. These plans include the launch of new products (such as PMS and AIF) to build a holistic platform, as shown by the launch of two equity-oriented thematic sectorial funds and one long-duration debt fund. It also said that the AMC wants to increase the number of real delivery outlets, improve the digital experience, and keep the big equity schemes in the top tier of success while creating alpha.
BOB Capital Markets said that HDFC AMC shares are selling at 25 times FY25E EPS, which is a 30% discount from the long-term average. However, it continues to value the company at the same multiple, which gives it a goal price of Rs 1,946. It kept its “Hold” rating on the stock while keeping an eye on the company’s ability to win back market share. It is still optimistic about HDFC AMC’s strong brand, big AUM base, and strong scheme success.
Abrdn Investment sold all of its shares in HDFC Life for Rs 2,069 crore last month. The management company from the UK sold 3.57 crore HDFC Life shares for Rs 579.60 each. In the early trading hours of today, Indian market benchmarks fell sharply, with banks, financials, car, and energy stocks leading the way down.