HDFC AMC Well Poised To Sustain Outperformance, Says Motilal Oswal; Maintains 'Buy'

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Motilal Oswal Report

HDFC Aseet Management Company Ltd. remains a strong player in the mutual fund industry, backed by robust financial performance, steady assets under management growth, and a strong retail presence.

While short-term market fluctuations pose challenges, the company’s long-term fundamentals remain solid. With an improved market position, a well-diversified product portfolio, and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders.

For FY25/FY26/FY27, we expect equity AUM growth of 55%/12%/18%. FY26 is anticipated to start on a weaker note in terms of AUM growth. In spite of the adjustment in commissions, we bake in a 1bp fall in the overall yield in FY26/27. Accordingly, we estimate an earnings CAGR of 14% for FY25-27.

We maintain our Buy rating on the stock with a one-year target price of Rs 4,800 at 32 times FY27E EPS.

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