InvestorQ : Why were the results of HDFC AMC so disappointing and do you think the rally is over for the stock?
manisha Kolvenkar made post

Why were the results of HDFC AMC so disappointing and do you think the rally is over for the stock?

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Mahima Roy answered.
8 months ago
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HDFC AMC reported PBT of Rs.425 crore in the Mar-20 quarter but the PBT was lower at about Rs.329 crore if the adjustment for investments were also considered. HDFC AMC had an overall market share of 13.7% of the MF industry and a 15% share of individual AUM assets. For the full year FY20, the net profit was 41% higher at Rs.1352 crore. This needs to be seen in light of a cut in corporation tax rates introduced by the government in September 2019. In the absence of the tax rate cut, the profits would have been much lower for the AMC. The AMC also offered dividend per share of Rs 28.

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