Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (July 2024)
24 slides from Hdfc Asset Management's investor presentation, July 2024
Slide 1: Invest in Foundations of Viksit Bharat
INVEST IN FOUNDATIONS OF VIKSIT BHARAT HDFC INFRASTRUCTURE FUND
Slide 2: India has come a long way on building Infrastructure
India has come a long way on building Infrastructure… Highway Construction in India Energy Generation capacity (in GW) (’000 Km and Km/day) 14 40 500 442 34 12 35 400 30 Realization that road to Viksit Bharat needs 10 12 significant improvements in Infrastructure 25 300 268 8 20 Material investments
Slide 3: India has come a long way on building Infrastructure
India has come a long way on building Infrastructure… Total cargo at Major Ports in India (mn tonnes) Total length of railway electrified in India (in km) 1,000 819 FY24 66,000 800 600 555 400 FY14 21,801 200 2013-14 2023-24 0 20,000 40,000 60,000 80,000 Length of operational metro tracks in India (
Slide 4: Significant efficiency improvements driving better logistics rankings
Significant efficiency improvements driving better logistics rankings Improving performance on Logistics rankings 25.9 RAIL from 54 in 2014 to 38 in 2023 37.8 Freight rail speed (Km/hr) 60 54 55 50 44 ROAD 190 17% POWER 45 38 Average Peak power 40 Truck 250 INDIA Almost Nil shortage 35 km / day INFR
Slide 5: …but the job is far from done
…but the job is far from done When we look at per capita measures compared to other populous nations — we see a lot of headroom for growth World Average: Vietnam 107 185 China 289 United States United Kingdom 151 184 3,105 181 145 2306 312 2,006 397 India 5464 11,922 4,244 Containers per capita 14 C
Slide 6: Viksit Bharat will require a much larger canvas
VIKSIT BHARAT will require a much larger canvas Comparison with peer countries shows that the scope to create infrastructure remains very large A US$10 trn economy, Viksit Bharat, will require a significantly larger infrastructure base India at US$ 3.5 trn vs China when it was at US$10 trn in 2014 C
Slide 7: Right ingredients in place for cycle continuity
Right ingredients in place for cycle continuity Macro stability Macro stability and andimproved Structured approach towards Issues faced in earlier balance improvedsheet balance sheet infra roll-out by government cycles are being corrected Government capex Efficient roll-out through Too much relianc
Slide 8: Entering mid-cycle of the new investment cycle
Entering mid-cycle of the new investment cycle Investments as a % of GDP have been on the rise, and touched 30% in FY24 DID YOU KNOW? Investments constitute less than 30% of The previous cycle had 11 years with investments >30%, averaging 33% GDP for India; nations typically show values India has en
Slide 9: Government CAPEX supported by strong fiscal position
Government CAPEX supported by strong fiscal position Improvement in tax collections has allowed government to spend higher on infrastructure India’s government debt to GDP is lower than many developed countries and developing peers Capital expenditure as a percentage of total budget increased to 22%
Slide 10: Private corporate sector – improving space for CAPEX
Private corporate sector – improving space for CAPEX Improvement in corporate profitability driving better outlook for capex by private corporations Low leverage amongst corporates improves ability to borrow for capex Rising profitability Low leverage among corporates Capex amongst corporates pickin
Slide 11: Household CAPEX seeing traction
Household CAPEX seeing traction Economics for households to invest in homes have improved Reforms in this sector aimed at improving transparency and fund flows are also helping Changes in preference for premium and formal products aids listed developers Realty sector has large positive impact on var
Slide 12: Sectors and Type of Companies that benefit from CAPEX
Sectors and Type of Companies that benefit from CAPEX Sectors Railways Roads Ports National Rail Plan Bharat Mala Sagar Mala Project Growth Drivers New Rail Corridors Dual access control Metro services State expressways Launch of 4,500 Vande Bharat 50,000km of high-speed roads Port Capacity targeted
Slide 13: Sectors and Type of Companies that benefit from CAPEX
Sectors and Type of Companies that benefit from CAPEX Sectors Airports Housing & Real estate Power Water Rising income and Improving affordability Power for All & Drinking water and Growth prosperity Rising momentum in Net Zero by 2070 irrigation programs Drivers launches and sale Increasing penetra
Slide 14: HDFC Infrastructure Fund
HDFC INFRASTRUCTURE FUND For disclaimers refer slide 23 02 14
Slide 15: Portfolio Strategy
Portfolio Strategy HDFC Infrastructure Fund aims to invest predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure. Broader exposure to Infrastructure sector by investing Asset Financiers, Asset Developers
Slide 16: Infrastructure Push played via 3 beneficiary types
Infrastructure Push played via 3 beneficiary types Asset Banks and infrastructure financing companies Financiers Asset HDFC Infrastructure Fund Creators Engineering and construction companies Asset Owners/ Companies that own infrastructure projects Developers For disclaimers refer slide 23 02 16
Slide 17: Wide Universe of Companies
Wide Universe of Companies Count Market Cap (Rs crores) (%) Capital Goods 196 29,48,130 12.5 Construction 42 9,00,490 3.8 Construction Materials 28 8,87,803 3.8 Consumer Durables 73 13,77,127 5.8 Financial Services 118 76,82,295 32.5 Metals & Mining 27 17,70,717 7.5 Oil, Gas & Consumable Fuels 33 36
Slide 18: Current Portfolio
Current Portfolio Portfolio Benchmark Stock Weight / Number Sector Weight Weight AUM INR 2,055 crores Construction & Construction Materials 24.2 31.7 Number of stocks 57 Financial Services 20.6 11.86 Top 10 stocks 42% Capital Goods 13.7 - Equity (%) 88% Oil, Gas & Consumable Fuels 10.9 13.8 Of which
Slide 19: Why invest in HDFC Infrastructure Fund?
Why invest in HDFC Infrastructure Fund? Infrastructure plays a critical role in India’s self-reliance and economic prosperity, receiving significant focus from the government. India’s infrastructure space is positioned well with an increase in capex by government, corporates and households. Changes
Slide 20: Key Risks
Key Risks Risks Mitigants Growth slowdown: Domestic economic slowdown could India’s domestic economy is well placed, being amongst negatively impact resources available to spend on the fastest growing economies in the world infrastructure Change in Government strategy and execution: Indian governmen
Slide 21: Scheme Performance
Scheme Performance Performance^ - Regular Plan - Growth Option NAV as at May 31, 2024 ₹45.266 (per unit) Scheme Scheme Additional Value of investment of (₹) 10,000 Period Benchmark Benchmark Returns (%) Returns (%) # Returns (%) ## Scheme(₹) Benchmark(₹)# Additional Benchmark(₹)## Last 1 Year 78.10
Slide 22: Product Labeling & Riskometer
Product Labeling & Riskometer HDFC Infrastructure Fund (An open ended equity scheme following Riskometer# Benchmark Riskometer infrastructure theme) is suitable for investors who are seeking*: BENCHMARK : BSE India • To generate long-term capital appreciation / income Infrastructure Index (TRI) • In
Slide 23: Disclaimer
Disclaimer The views expressed herein are as of 5th July 2024 and are based on internal data, publicly available information and other sources believed to be reliable. Views expressed by representatives of HDFC AMC/MF herein involve known and unknown risks and uncertainties that could cause actual r
Slide 24: Thank You
Thank You
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