After the company released impressive results for the second quarter of FY25, the share price of HDFC Asset Management Company increased by more than 5% on Wednesday, setting a new record. A new high of ₹4,783.75 per share was reached by HDFC AMC shares on the BSE, rising as much as 5.16%.
After reporting a 32% YoY growth from ₹436.52 crore in the same period last fiscal year, HDFC Asset Management Company declared a net profit of ₹576.61 crore for the quarter that ended in September 2024.
From ₹765.35 crore in the same quarter last year to ₹1,058.19 crore in Q2FY25, the company’s overall income increased by 38%.
By the end of Q2, HDFC AMC’s Assets Under Management (AUM) had grown by 7.5% to ₹7.58 lakh crore. The company’s part of the debt market increased to 13.5% from 13.3%, but its share of the equity market stayed constant at 12.9%.
Excluding index funds, the quarterly average assets under management (QAAUM) of actively managed equity-oriented funds was ₹4,67,600 crore as of September 30, 2024, signifying a 12.9% market share.
“Strong equity markets and inflows have led to a higher share of equity in QAAUM to 65.7% (+810 bps YoY / +140 bps QoQ). This drove up revenue and EBIT by 38% and 47.4% YoY,” said Nuvama Institutional Equities.
The broking firm increased the target price for HDFC AMC shares from ₹4,910 to ₹5,240 while maintaining a “Buy” recommendation on the shares.
Phillip Capital observed that a robust increase in AUM was propelled by thriving equity markets. It anticipates that the pressure on the equity yield will continue, and whenever its share starts to decline—it is now at an all-time high of 65.7%—it may lower the gross yield.
“At the current price, stock trades at a P/E of 39x/31x on FY25/FY26 earnings; We believe at the current price, the market is factoring AUM CAGR of c.18-19% for 10 years and hence see limited upside from here,” said Phillip Capital.
With a reduced target price of ₹4,470, which values it at 30 times FY26 profits, it retains its “Neutral” rating.
Even if HDFC AMC is still performing well, Kotak Institutional Equities believes the company is well-valued and has few opportunities for re-rating (market-linked returns). It kept its “Reduce” rating and the ₹4,200 target price for HDFC AMC shares unaltered.
It estimated the stock at ~30X September 2026E EPS, implying an earnings CAGR of ~20% during FY2025-27E. It revised earnings upward modestly.
HDFC AMC Share Price
Investors have received respectable returns from the HDFC AMC share price this year. In one month, the stock increased by over 7%, and in three months, it increased by over 16%. The price of HDFC AMC’s stock has increased by more than 48% year-to-date (YTD) and more than 66% over the last 12 months.
HDFC AMC shares were up 4.87% at ₹4,770.05 a share on the BSE at 10:25 a.m.
