'Buy' HDFC AMC Stock Says Centrum Broking After Its Q3 Results; Sees 29% Upside; Here's Why

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Centrum Broking Report

HDFC Asset Management Company Ltd. had a strong quarter with PAT of Rs 6.4 billion (10% ahead of our estimate) with quarterly average assets under management of Rs 7.9 trillion at end-Q3 FY25.

Actively managed equity segment grew 51% YoY to Rs 4.8 trillion. The overall market share increased by 30 bps YoY to 11.5% and actively managed equity QAAUM grew 20 bps yoy to 12.8%. Yield stood at 47 bps at the end of both, Q3 FY25 and 9M FY25.

Distribution trends remained broadly stable, although the direct channel is growing stronger. We roll over valuation to FY27 with a revised target price target price of Rs 4,990 (versus Rs 4,545 earlier), valuing the company at an unchanged multiple of 36 times.

We upgrade HDFC AMC to Buy with a potential upside of 29% based on:

1. strong numbers and

2. 14% price decline over the last three months.

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