HDFC AMC jumps 17% in seven days; crosses 1-trillion MCap

Shares of the HDFC Asset Management Company jumped 17.12% in seven trading sessions from its recent closing low of Rs 4,131.65 on 7 October 2024.

The stock hit an all-time high of Rs 4,862 today. The counter has soared 80.66% from its 52-week low of Rs 2,691.20 hit on 30 October 2023.

On the BSE, 0.79 lakh shares were traded in the counter so far compared with average daily volumes of 0.30 lakh shares in the past two weeks.

Meanwhile, HDFC AMC's market capitalisation crossed Rs 1 trillion-mark for the first time as the stock hit a new high after reporting a robust set of numbers for September quarter of financial year 2025 amid rising equities and broadly steady market share.

The company's standalone net profit jumped 31.84% to Rs 576.88 crore on 38.23% increase in total income to Rs 1,057.82 crore in Q2 FY25 over Q2 FY24. The AMC had a QAAUM (quarterly average assets under management) of Rs 7,58,800 crore as of 30 September 2024 compared to Rs 5,24,700 crore as on 30 September 2023 and its market share was 11.5% in QAAUM of the mutual fund industry.

Further, a foreign brokerage house has upgraded its ratings on the HDFC AMC stock to outperform from hold; increasing the target price to Rs 4,920 from Rs 4,450, quoting AUM growth far ahead of expectation.

The stock had outperformed the market over the past one month, rising 9.17% as against Sensex's 1.57% decrease.

The scrip had outperformed the market in past three months, jumping 20.59% as against 6.09% rise in Sensex.

The counter had also outperformed the market in past one year, soaring 69.46% as against Sensex's 23.45% surge.

On the technical front, the stock's daily RSI (relative strength index) stood at 72.393. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading above its 50 day, 100-day and 200-day simple moving average (SMA) placed at 4,363.05, 4,187.90 and 3,921.49, respectively. These levels will act as crucial support zones in near term.

HDFC Asset Management Company (HDFC AMC) is the investment manager of HDFC Mutual Fund, one of the largest mutual funds in the country. The AMC has a diversified asset class mix across equity and fixed income/others. It also has a countrywide network of branches along with a diversified distribution network comprising banks, independent financial advisors, and national distributors.