Synopsis: HDFC Asset Management Company (AMC) witnessed a significant surge in its stock value, reaching an all-time high after reporting impressive Q2 financial results. The stock soared by 5.45% intraday, and the market capitalization crossed the Rs. 1 lakh crore mark for the first time in the company’s history.
HDFC AMC's stock climbed by 5.45% on Wednesday, hitting a record high of Rs. 4797 during intraday trading on the Bombay Stock Exchange (BSE), up from its previous close of Rs. 4548.65.
This remarkable increase was driven by the firm’s stellar Q2 performance, where it reported a 32% rise in net profit to Rs. 576.61 crore, compared to Rs. 436.52 crore in the same period last year.
This milestone marks a historic moment for HDFC AMC as its market capitalization reached Rs. 1.02 lakh crore for the first time.
Over 0.32 lakh shares were traded, contributing to a turnover of Rs. 15.12 crore on the BSE.
Over the past two years, the stock has zoomed by 151%, with a 61.60% increase over the last three years.
HDFC AMC shares fell to their 52-week low of Rs. 2691.20 on October 30, 2023, but the stock has since shown a strong recovery.
Its relative strength index (RSI) stands at 61.7, indicating the stock is neither overbought nor oversold.
The company is trading above all key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages, reinforcing investor confidence in the stock.
In Q2, HDFC AMC’s revenue from operations grew by 38%, reaching Rs. 887.2 crore, up from Rs. 643 crore a year earlier.
The firm also reported a 9% quarter-on-quarter (Q-o-Q) and 47% year-on-year (Y-o-Y) growth in AUM, with total AUM reaching Rs. 7.69 lakh crore.
Equity AUM growth played a crucial role in this expansion, showing a 10% Q-o-Q and 62% Y-o-Y increase.
In conclusion, HDFC AMC’s outstanding performance in Q2 has significantly boosted investor confidence, resulting in its shares hitting an all-time high and pushing the market cap above Rs. 1 lakh crore for the first time.
Strong profit growth, rising AUM, and robust trading above key moving averages signal the company’s potential for sustained growth in the financial markets.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
