Near-term positives priced in for HDFC Asset Management Company stock

HDFC Bank works on open architecture and HDFC AMC's share in the bank's mutual fund business was only 24 per cent

HDFC Asset Management Company (HDFC AMC) reported a healthy profit after tax (PAT) of Rs 430 crore for the July-September quarter (Q2) of financial year 2023-24 (FY24). It rose 20.2 per cent year-on-year (Y-o-Y) and decreased 8.4 per cent quarter-on-quarter (Q-o-Q). This was driven by good equity returns, leading to a sequential improvement in revenue yields. The drop in treasury yields was responsible for the sequential decline.

The assets under management (AUM) growth was around 8.1 per cent Q-o-Q, and led to better blended yields at 49 bps (up 47bps in Q1FY24). The increase of equity in the