Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (March 2025)
35 slides from Hdfc Asset Management's investor presentation, Mar 5, 2025
Slide 1: Aim to Accelerate Your Growth
1 AIM TO ACCELERATE YOUR GROWTH Invest in HDFC Transportation and Logistics Fund and drive the future of India (An open-ended equity scheme investing in Transportation and Logistics themed companies) Refer product labelling & riskometer on page 33 March, 2025 Refer disclaimer on page 34
Slide 2: Transportation and logistics – Multiple opportunities
Transportation and logistics – Multiple opportunities Opportunities across transportation and logistics with multiple sub-segments provide diversification Automotive Airports and Airlines Transportation Shipping and ports + Railways Logistics E-commerce Road/rail/Air cargos Supply chain/ Warehousing
Slide 3: Themes within theme
Themes within theme Varied Business Cycles Disruptive innovation and emerging technologies Access to structural growth and cyclical investment Opportunity to invest in new-age technologies opportunities Diverse Consumer Base Diverse Business Models Universe straddles luxury, mid-market and economy V
Slide 4: Drivers for Transportation theme
Drivers for Transportation theme Mobility Tailwinds Premiumization Innovation, Decarbonization and Safety Largest and one of the youngest Rising disposable income leading Government of India Net-Zero populations in the world to premiumization economy goal by 2070 Rising per capita income Consumer pr
Slide 5: Mobility tailwinds
Mobility tailwinds Refer disclaimer on slide 34 02 05/35
Slide 6: Low domestic penetration
Low domestic penetration Low Domestic Penetration across segments creates long-term growth opportunities 2W penetration rate (‘00 population) PV penetration in India (Lowest among large economies) 700 Passenger Cars per 1,000 inhabitants (%) R² = 0.6966 35 Italy, 625 600 30 29.6 Germany, 562 Japan,
Slide 7: Innovation, Decarbonization & Premiumization
Innovation, Decarbonization & Premiumization Refer disclaimer on slide 34 02 07/35
Slide 8: Emerging Opportunities due to current challenges
Emerging Opportunities due to current challenges Problems with current automotive model Under-utilized Polluting Time-Consuming Dangerous <4% utilization on 20bn hours spent 150,000 traffic-related ~30% of air pollution a 24 hour day operating a vehicle fatalities in India annually Innovation happeni
Slide 9: Why EV will be an opportunity rather than a threat for Auto
Why EV will be an opportunity rather than a threat for Auto End of over 100 years of engine development Vehicle Lifecycle cost Insurance cost advantage for western and far eastern Increase in global automotive players Maintenance cost 7% 3% opportunities Tyre replacement Ex-showroom price 20% Large
Slide 10: Innovation driving the way for new listings and universe expansion
Innovation driving the way for new listings and universe expansion Ride-hailing businesses Electric Vehicle manufacturers Global Automobile manufacturing giants Food-ordering and Quick-commerce companies Delivery platforms Refer disclaimer on page 34 02 10/35
Slide 11: Trend of premiumization in 2Ws, PVs and trucks
Trend of premiumization in 2Ws, PVs and trucks Income pyramid expected to change drastically with significant increase in upper middle income and rich income groups over the next 10 years Premiumization trend (higher volume of SUV, premium 2Ws, high tonnage trucks and higher HP tractors) remains a ke
Slide 12: Tailwinds for Auto Ancillaries
Tailwinds for Auto Ancillaries Consumers preference for premium features has increased content per car over the last few years Higher content per car will lead to higher vehicle ASPs and growth for auto component industry Increased adoption of premium features FY17 FY19 FY21 FY23 FY24 FY27E 50 50 50
Slide 13: Pricing discipline of Manufacturers aiding margin expansion
Pricing discipline of Manufacturers aiding margin expansion Motor Cycle and Commercial Vehicles manufacturer - One of India's leading Commercial Vehicles manufacturer - Operating Margin % Operating Margin % 35.0 15.0 30.0 30.1 10.0 12.0 10.8 25.0 27.2 8.1 24.3 24.1 5.0 6.7 20.0 20.7 20.9 4.6 3.5 15.
Slide 14: Governments focus on manufacturing
1 Governments focus on manufacturing Refer disclaimer on slide 34 02 14/35
Slide 15: Large growth potential for Auto and Auto component industry
Large growth potential for Auto and Auto component industry Consistent rise in overall Auto Industry Revenue (US$ bn) Auto and auto components plays a pivotal role 250 CAGR: 10% 212.1 accounting for ~7% of GDP. Govt’s Automotive mission 200 192.8 plan 2016-26 target to increase this further to 12%.
Slide 16: Export Potential
1 Export Potential Refer disclaimer on slide 34 02 16/35
Slide 17: Large export potential for 2W segment and tractors
Large export potential for 2W segment and tractors 2W export has ~17% market share in Total Addressable Market (Ex China and India) and has the potential to grow 3x by 2035 Tractor export has ~2.6% market share in Total Addressable Market (Ex China and India) and has the potential to grow more than
Slide 18: Infra Push
1 Infra Push Refer disclaimer on slide 34 02 18/35
Slide 19: Efficient and modernized transportation
Efficient and modernized transportation Infra spending will drive the automotive demand as segments like trucks and tractors are highly correlated to infra development. Better road infra is also positively correlated to personal mobility demand (SUV sales for long distance travel) Better infrastruct
Slide 20: Logistics
1 Logistics Refer disclaimer on slide 34 02 20/35
Slide 21: Drivers for Logistics theme
Drivers for Logistics theme Govt Focus Shift from Growth in GDP (PM Gati Shakti, Unorganized to and E-commerce National Logistics Organized industry Policy, Bharatmala, Sagarmala, UDAN etc) Government Target for Logistics Industry Reduce cost of logistics in India to be comparable to global benchmar
Slide 22: HDFC Transportation and Logistics Fund
1 HDFC Transportation and Logistics Fund Refer disclaimer on slide 34 02 22/35
Slide 23: Investment Strategy
Investment Strategy Core Portfolio Flexi Cap market strategy Stock Selection Core of the portfolio (atleast Identify opportunities across Preference for companies 80%) will be invested in stocks market cap segments that represent the Which are leaders/have Transportation and Logistics Benchmark (NIF
Slide 24: Market Cap diversification and low overlap with broader indices
Market Cap diversification and low overlap with broader indices Universe^ Benchmark* Total Market Cap Total Market Cap Category No of Companies (₹ Crore) No of Companies (₹ Crore) Weights (%) Large 14 2,646,274 12 2,416,824 77.3% Mid 19 955,927 13 684,008 18.7% Small 116 673,038 5 116,172 4.0% Total
Slide 25: Valuation Landscape
Valuation Landscape NIFTY Transportation and Logistics Index 4-Wheelers 40 40 35 35 30 30 25 25 20 20 15 15 10 10 4W P/E 4W P/E 5 Nifty TL P/E Nifty TL P/E 5 0 0 Feb-20 Feb-24 Feb-25 Feb-23 Feb-22 Feb-18 Feb-16 Feb-19 Feb-15 Feb-21 Feb-17 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-2
Slide 26: Return Profile
Return Profile Years NIFTY Transportation & Logistics Index TRI Nifty 500 TRI 1 Year 15.3 10.0 3 Years 24.6 14.2 5 Years 25.2 18.2 10 Years 12.8 12.9 15 Years 17.6 12.8 As on 31st January, 2025 Value of ₹ 1,00,00 invested on 01-Apr-2005^ (Upto 31-Jan-2025) 4,000,000 Nifty 500 TRI Nifty Transportatio
Slide 27: Portfolio Positioning
Portfolio Positioning Portfolio Quants Top Holdings Parameter Weight % Large Cap Weight % Fund Size (Rs Cr) Rs 1,278 Crore Maruti Suzuki India Limited 10.2 Number of Stocks 29 Eicher Motors Ltd. 9.6 Top 10 Stocks 64.4% Bajaj Auto Limited 7.1 Equity % 96.3% Hyundai Motor India Limited 6.6 Cash and Eq
Slide 28: Why invest in HDFC Transportation and Logistics Fund?
Why invest in HDFC Transportation and Logistics Fund? Manufacturing and discretionary consumption growth will be two fundamental drivers of Indian economy going forward Structural and cyclical upturn: Post cyclical downturn and pandemic supply chain disruption, transportation is poised for long term
Slide 29: About the Fund Manager
About the Fund Manager Mr. Priya Ranjan Fund Manager & Senior Equity Analyst, Dealing & Investments Priya Ranjan has collectively over 16 years of experience in Equity research He joined HDFC Asset Management Company Ltd in Nov - 2020. Prior to that, he has worked with Antique Stock Broking (Institu
Slide 30: Fund Facts
Fund Facts Particulars HDFC Transportation and Logistics Fund Type of Scheme An open-ended equity scheme following transportation and logistics theme To provide long-term capital appreciation by investing predominantly in equity and equity related securities under Transportation and Investment Objec
Slide 31: Asset allocation
Asset allocation Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows: Minimum Allocation Maximum Allocation Types of Instruments Risk Profile (% of Net Assets) (% of Net Assets) Equity and Equity related instruments of 80 100 Very High trans
Slide 32: Performance
Performance PERFORMANCE ^ - Regular Plan - Growth Option NAV as on January 31, 2025 ₹14.400 (per unit) Value of ₹ 10,000 invested Scheme Benchmark Additional Benchmark Period Returns (%) Returns(%)# Returns (%) ## Scheme (₹) Benchmark (₹)# Additional Benchmark (₹)## Last 1 Year 17.03 15.32 9.55 11,7
Slide 33: Benchmark and Scheme Riskometers
Benchmark and Scheme Riskometers HDFC Transportation and Logistics Fund (An open-ended Riskometer# Name of the Benchmark and Riskometer equity scheme investing in Transportation and Logistics NIFTY TRANSPORTATION & themed companies) is suitable for investors who are seeking*: LOGISTICS INDEX (Total
Slide 34: Disclaimer
Disclaimer 1 The presentation dated 5th March, 2025 has been prepared by HDFC Asset Management Company Limited (HDFC AMC) based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you mu
Slide 35: Thank You
Thank You
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