HDFC Arbitrage-WP(M-IDCW)

Ticker: mf14254
Decent 48/100

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Business Overview

HDFC Arbitrage-WP (M-IDCW) is a mutual fund designed for investors seeking steady returns with lower risk. This fund primarily invests in arbitrage opportunities, balancing equity and debt to minimize volatility. Ideal for conservative investors or those looking to diversify their portfolio, it offers a strategic approach to capital growth. With a focus on wealth preservation, HDFC Arbitrage-WP aims to provide consistent income while safeguarding against market fluctuations.

  • Designed for conservative investors
  • Focuses on arbitrage opportunities
  • Balances equity and debt investments
  • Aims for steady, low-risk returns
  • Helps in portfolio diversification

Investment Thesis

HDFC Arbitrage-WP offers a compelling investment opportunity backed by a strong promoter group with a stellar reputation. The fund is well-positioned to capitalize on the growth of digital services, ensuring a robust performance. Additionally, its attractive valuation compared to peers makes it a prudent choice for investors seeking stability and growth.

  • Strong backing from HDFC Group, ensuring credibility and trust.
  • Significant growth potential in digital services sector.
  • Attractive valuation metrics compared to industry peers.
  • Consistent performance in volatile markets, providing stability.
  • Ideal for conservative investors seeking steady returns.

Peer Perspective

HDFC Arbitrage-WP currently trades at a premium compared to peers like ICICI Prudential Arbitrage and Axis Arbitrage. A potential rerating could occur if it maintains margin stability amidst rising market volatility.
📊 Stock Investment Checklist (100 Points)
HDFC Arbitrage-WP(M-IDCW) • Updated: 2025-10-01 02:51:10
  • 10
    Business
    High
    The sector is stable but lacks significant growth drivers.
  • 10
    Growth
    High
    Revenue growth is inconsistent with limited profit expansion.
  • 8
    Profitability
    High
    ROE and ROCE are below industry averages, cash flow is moderate.
  • 10
    Valuation
    High
    Valuation metrics are in line with peers but not compelling.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity is a concern.
  • 9
    Governance
    High
    Promoter holding is strong, but there are some concerns over disclosures.
  • 6
    Drivers
    Good
    Limited catalysts for growth and execution risks are present.
  • 6
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 48 / 100 • Decent
The stock presents a decent investment opportunity but lacks strong growth and profitability metrics.