HDFC AMC stock trades lower after marketing boss calls it quits

Shares of HDFC AMC dropped nearly 1 percent in early trade on September 6 after the marketing head of the asset management firm stepped down.

It, however, recovered some losses to trade at 0.16 percent down at Rs 2467.85 on the NSE around 10:05am.

Amaresh Jena’s resignation will be effective from September 8. Iin an exchange filing on September 5, the asset management firm cited his “unavoidable personal reasons” and “exigencies” behind his decision to quit.

Brokerage Views

KR Choksey recommended ‘accumulate’ rating on HDFC AMC with a target price of Rs 2,725 in its research report of July 31. “HDFC Asset Management Company (AMC) shares are currently trading at a price-to-earnings (P/E) ratio of 34.07 times the expected earnings for the fiscal year 2024 and 29.7 times the expected earnings for the fiscal year 2025,” the brokerage firm said.

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“To determine the target price, we are using a P/E multiple of 25.5 times on the projected earnings for fiscal year 2025, which is estimated to be Rs 85.2 per share. This calculation leads us to a target price of Rs 2,725 per share, which is higher than the previous target of Rs 1,970 per share. This represents a potential upside of 7.5 percent compared to the current market price,” it added.

Stock Performance

The HDFC AMC stock has given a return of 37.37 percent over the last six months. The benchmark Nifty50 index has given a return of 10.52 percent over the same duration.

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