HDFC AMC appoints Navneet Munot as MD & CEO - Angel Broking

Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

HDFC AMC appointed Navneet Munot as the Managing Director & CEO. He will succeed the present Managing Director Milind Barve. Navneet Munot, who is currently chief investment officer at SBI Mutual Fund and he worked here for 12 years. For the last few quarters market share has been not growing for HDFC AMC, in HDFC AMC's AUM declined 3.2% YoY to Rs. 3,54,400 crore (flattish QoQ), primarily on account of decline in liquid AUM. Equity AUM declined 12.8% YoY to Rs. 1,43,700 crore. HDFC AMC witnessed a decline in market share from 14.9% in Q2FY20 to 13.2% in Q2FY21. Equity AUM market share also weakened from 15.8% in Q2FY20 to 13.6% in Q2FY21. SIP Market share also declined. We believe the change in top management is structurally positive for HDF AMC. We have a positive view on HDFC AMC owing to the strong brand franchise and one of the best PAT to AUM (profitability), however, the only concern investor was having, subdued AUM growth and decline in Maret share, Which would likely get gradually resolved. Currently, HDFC AMC/Nippon/UTI AMC is trading at 13.9%/8.8%/3.4% of AUM, premium valuation for HDFC due to strong brand franchise and operationally well managed AMC.

Source : Equity Bulls

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