Revenue for the quarter climbed 38% to Rs 887.2 crore, compared to Rs 643 crore year-on-year. Its total income rose 38% to 1,058.19 crore in the July-September quarter from Rs 765.35 crore in the year-ago period.
Assets Under Management (AUM) grew by 7.5%, standing at Rs 7.58 lakh crore as of the end of Q2. The company’s market share in the equity segment remained stable at 12.9%, while its share in the debt market increased to 13.5% from 13.3%.
Should you buy, sell, or hold HDFC AMC’s stock? Here’s what analysts say:
Jefferies
Jefferies has maintained a “Buy” rating on HDFC AMC, raising its target price from Rs 4900 to Rs 5450.The brokerage notes that yields have improved due to commission rationalization, while the company delivered a strong operational quarter, though a one-off tax affected its EPS. Despite this, HDFC AMC‘s market share has increased, supported by sustained elevated industry flows. Additionally, Jefferies has revised its estimates upwards by 4-8% to account for higher assets under management (AUM) and investment income.
CLSA
CLSA has upgraded HDFC AMC to “Outperform” from “Hold” and raised the target price to Rs 4920 from Rs 4450.The brokerage expects yield moderation to occur at a softer pace in the future. AUM growth has exceeded expectations, while the recent tax rate increase is seen as a one-off event, with normalization anticipated next quarter. CLSA prefers asset management companies (AMC) over life insurance firms in the near term and has lifted its EPS estimates for HDFC AMC by 5-9% for FY25-27.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
