HDFC Asset Return On Equity vs. Revenue
| HDFCAMC Stock | 4,223 9.15 0.22% |
For HDFC Asset profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HDFC Asset to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HDFC Asset Management utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HDFC Asset's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HDFC Asset Management over time as well as its relative position and ranking within its peers.
HDFC |
HDFC Asset Management Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HDFC Asset's current stock value. Our valuation model uses many indicators to compare HDFC Asset value to that of its competitors to determine the firm's financial worth. HDFC Asset Management is one of the top stocks in return on equity category among its peers. It also is rated as one of the top companies in revenue category among its peers totaling about 74,974,470,554 of Revenue per Return On Equity. At present, HDFC Asset's Total Revenue is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value HDFC Asset by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HDFC Asset's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.HDFC Revenue vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
HDFC Asset |
| = | 0.34 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
HDFC Asset |
| = | 25.84 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
HDFC Revenue vs Competition
HDFC Asset Management is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Financials industry is currently estimated at about 206.41 Billion. HDFC Asset retains roughly 25.84 Billion in revenue claiming about 13% of equities under Financials industry.
HDFC Asset Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HDFC Asset, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HDFC Asset will eventually generate negative long term returns. The profitability progress is the general direction of HDFC Asset's change in net profit over the period of time. It can combine multiple indicators of HDFC Asset, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 2.1 B | 2.1 B | |
| Operating Income | 16 B | 12.8 B | |
| Income Before Tax | 24.8 B | 13.9 B | |
| Total Other Income Expense Net | 8.8 B | 9.2 B | |
| Net Income | 19.4 B | 13.3 B | |
| Income Tax Expense | 5.3 B | 3.7 B | |
| Net Income From Continuing Ops | 19.4 B | 11.5 B | |
| Net Income Applicable To Common Shares | 16.4 B | 10.4 B | |
| Interest Income | 279.1 M | 457.7 M | |
| Net Interest Income | -90.9 M | -86.4 M | |
| Change To Netincome | -1.7 B | -1.8 B |
HDFC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on HDFC Asset. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of HDFC Asset position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the HDFC Asset's important profitability drivers and their relationship over time.
Use HDFC Asset in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if HDFC Asset position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HDFC Asset will appreciate offsetting losses from the drop in the long position's value.HDFC Asset Pair Trading
HDFC Asset Management Pair Trading Analysis
The ability to find closely correlated positions to HDFC Asset could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HDFC Asset when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HDFC Asset - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HDFC Asset Management to buy it.
The correlation of HDFC Asset is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HDFC Asset moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HDFC Asset Management moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for HDFC Asset can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your HDFC Asset position
In addition to having HDFC Asset in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Services Theme or any other thematic opportunities.
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Other Information on Investing in HDFC Stock
To fully project HDFC Asset's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of HDFC Asset Management at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include HDFC Asset's income statement, its balance sheet, and the statement of cash flows.