HDFC AMC shares: Revenue misses offset, core income in line. Should you buy?

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Revenue was lower at Rs 5.4 billion

Hence, annualised yields were a miss at 48 basis points

Opex too was a beat at Rs 1.46 billion; due to both employee cost and other expenditure

Operating income was largely in line at Rs 3.95 billion resulting in similar operating yields at 35 bps

Other income was ahead at Rs 969 million

Better other income and lower tax rate led to PAT being ahead at Rs 3.7 billion

Core PAT was Rs 3.02 billion

The stock trades at 25 times/22 times FY24 E/FY25e core EPS.

The board has recommended a dividend of Rs 48 per equity share of Rs 5 each of the company for the financial year ended March 31, 2023, subject to approval of shareholders at the ensuing Annual General Meeting.

The dividend if approved by the shareholders, will be dispatched

commencing from the day after the AGM.

Following the results' announcement, HDFC AMC's stock fell 0.92 percent to Rs 1,764.50 apiece on NSE. The shares have lost over 19 percent on a year-to-date basis.

In the past 12 months, HDFC AMC has paid an equity dividend amounting to Rs 42 per share that resulted in a dividend yield of 2.39 percent.

HDFC AMC's board has also approved about 10.5 lakh stock options of Rs 5 each to eligible employees of the company under the Employees Stock Option Plan (ESOP).

The firm has an average target price of Rs 2,272, implying an upside of 29.20 percent from the current market levels, according to data from Trendlyne.