HDFC Asset Management Company (AMC) shares are set to attract attention on Wednesday following the company’s impressive financial results for the quarter ending September 2024. The profit after tax (PAT) grew by 32% year-on-year to ₹576.61 crore, compared to ₹436.52 crore during the same period last year.
Revenue for the quarter jumped 38% to ₹887.2 crore, up from ₹643 crore a year earlier. Total income also rose 38% to ₹1,058.19 crore, compared to ₹765.35 crore in the same quarter last year. The company’s Assets Under Management (AUM) increased by 7.5%, reaching ₹7.58 lakh crore by the end of Q2. HDFC AMC’s market share in the equity segment held steady at 12.9%, while its share in the debt market grew from 13.3% to 13.5%.
Analysts’ Recommendations on HDFC AMC Stock:
Jefferies:
Jefferies has maintained a “Buy” rating and increased its target price from ₹4,900 to ₹5,450. The brokerage noted improved yields due to better commission structures, despite a one-off tax affecting earnings per share (EPS). HDFC AMC’s market share has strengthened, benefiting from consistent high industry flows. Jefferies has also raised its earnings estimates by 4-8% to reflect higher AUM and investment income.
CLSA:
CLSA upgraded HDFC AMC from “Hold” to “Outperform,” raising its target price from ₹4,450 to ₹4,920. The firm expects yield growth to slow but at a more manageable rate. AUM growth has outperformed expectations, and CLSA considers the recent tax rate hike a temporary issue, predicting normalization in the next quarter. The brokerage has increased its EPS estimates for HDFC AMC by 5-9% for FY25-27, favoring AMCs over life insurance companies in the short term.
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