HDFC Asset Management Company (HDFC AMC) jumped 5 per cent on Tuesday, a day after hitting its 52-week low, as SBI Mutual Fund bought a stake in the asset manager via bulk deals. Data showed Adani group investor GQG, which is led by Rajiv Jain, offloaded 24,78,905 shares for Rs 1,600 apiece, on average, totalling Rs 396 crore on Monday. Jain’s GQG was recently in news after making Rs 15,446 crore worth of investments in four Adani group firms.
SBI Mutual Fund emerged as a buyer in the HDFC AMC case, acquiring 24,78,905 shares at Rs 1,600.85 a piece.
On Tuesday, shares of HDFC AMC climbed 4.86 per cent to settle at Rs 1,764.80. The scrip has an average target price of Rs 2,272, based on 18 analyst recommendations, suggesting a 22 per cent potential upside ahead.
HDFC AMC, had on Monday, also informed stock exchanges about the final NCLT order regarding the composite scheme of amalgamation of HDFC Investments and HDFC Holdings, wholly-owned subsidiaries of HDFC with and into HDFC; and HDFC with and into HDFC Bank. HDFC is the holding company of HDFC AMC. It held 52.57 per cent stake in the asset manager as of December 31.
“Though HDFC AMC’s financial growth is muted, the continuous focus on equity-oriented funds, new product launches, capturing new market share and steady yields are expected to enhance its performance in the near future,” said Yadhu Ramachandran, Research Analyst at Geojit Financial Services.
Ramachandran said HDFC AMC has a healthy pipeline of new product launches and steady SIP momentum to support AUM growth.
“However, the expansion of AUM and gaining additional market share across all segments are expected to boost overall growth in the near term. The management expects volumes to more than compensate for the loss in margins. Green ticks were also seen in terms of onboarding of new customers, improved digital assets, and user experience,” he said.