Marcellus Investment Exits HDFC AMC While Most Analysts Peg Upto 43% Upside


By Malvika Gurung — PMS Fund Manager and the Founder & Chief Investment Officer of the Marcellus Investment Managers Saurabh Mukherjea has exited the leading mutual fund company HDFC Asset Management Company (NS:) stock from its ‘Kings of Capital’ portfolio.

The portfolio comprises the top 10-15 quality financial stock, banks, NBFCs, life and general insurers, asset managers and brokers.

Companies including HDFC Bank (NS:), Bajaj Finance (NS:) and Kotak Mahindra Bank (NS:) are part of the portfolio, and in May 2022, Home First Finance Company (HFFC) was added in place of AU Small Finance Bank (NS:).

According to a recent note by Marcellus, its position sizing framework has suggested an exit from HDFC (NS:) AMC, led by a reduction in the forecast of long-term earnings growth for the stock.

The mutual fund scrip has plunged 40% in the past year and has been under pressure for some time now. Nearly 21 analysts covering the stock have initiated a buy recommendation, with an average price target of Rs 2,538/share, indicating an upside of 42.6%, as per Trendlyne data.


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