HDFC AMC Shares Traded Over Issue Price
HDFC stands for Housing Development Finance Corporation. The Asset Management Company of HDFC is India’s largest mutual fund. most profitable mutual fund manager. On Monday, HDFC AMC shares traded over 4 percent or three times to its issue price of Rs 1,100. On 11th November, the shares of HDFC AMC traded at Rs 3,336.
A source said that the Finance minister corporate tax cut along with the MSCI index recast helped investors sentiment.
The AMC has posted 79 percent to Rs 368.3crore profit after tax at the end of September which is Q3 result. In the last year, HDFC AMC had reported Rs 205.9 crore PAT (profit after tax), said by a source.
In September 2018, the total earnings of HDFC stood at Rs 515.3 crore. HDFC incomes raised to Rs 549 crore in the same period of this fiscal. In-terms of percent, the total earning raised by 7 percent compared to the previous year’s result.
A Certified stock expert said that in the second quarter of fiscal 2019-2020, the HDFC has delivered a strong set of numbers with small top-line growth which is the benefit of AMC. But, there is a defect in AMC. Low tax rates, commission expenses, and inexpensive charges should affect healthy improvements. These changes are done by the market regulator Sebi.
The stock experts believe that the mutual funds will provide high returns compared to the bank deposits. It operates a unique business model. HDFC provides banking services, education loans, deposits, general insurance, etc.