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Entry Price

2,317.00

Target

2,500.00

Recommend Date

23-10-2020

Return

7.90 %
BUY

Date : 23-10-2020

Market share slump continues to remain a dampener HDFC AMC reported a mixed performance wherein muted operational performance was supported by one-off other income. AUM growth remained weak with a decline in market share. Industry AUM increased to | 26.9 lakh crore as of September 2020 compared to | 24.5 lakh crore as of September 2019, largely led by a pick-up in nonequity inflows. Equity related AUM remained broadly flattish YoY at | 10.4 lakh crore, leading to a decline in proportion of equity AUM to 39% against 43% in Q2FY20. SIP inflows dipped 6% YoY to | 7800 crore though SIP accounts came in a tad higher by 17.2% YoY to 3.3 crore. HDFC AMC's AUM de-grew 3.2% YoY to | 354400 crore (flattish QoQ), mainly on account of decline in liquid AUM. Equity AUM declined 12.8% YoY (flattish industry growth rate) to | 143700 crore. Non-equity AUM grew 4.6% YoY to | 210700 crore, with inflow in debt AUM offsetting outflow in liquid schemes. HDFC AMC witnessed a decline in market share from 14.9% in Q2FY20 to 13.2% in Q2FY21. Equity AUM market share also declined from 15.8% in Q2FY20 to 13.6% in Q2FY21.