HDFC AMC's high valuation to stay as shares gain 65% on market debut

Seen as the best proxy to capture the financialisation theme, analysts feel AMCs including HDFC deserve to trade at a premium

Should investors cash out of the HDFC Asset Management Company stock after its stupendous listing was a question in most investor forums. While Monday’s 65 per cent gain on its market debut could have prompted many to opt out, a large section of analysts believe otherwise.

“Book-profit was the call many had on Avendus Supermarket (D-Mart’s parent company) soon after its listing. However, it has had a terrific climb since then. Investors could be repeating the mistake with HDFC AMC,” warns a senior analyst with a foreign brokerage.

While the broader markets have also risen in the past 16 months,