HDFC AMC and HDFC Life Insurance have retained Motilal Oswal's bullish view following their Q2 FY27 performances, with the brokerage reiterating its ‘Buy' ratings on both stocks. The brokerage expects HDFC Life's growth trajectory to remain at around 14% over FY26-FY28E and sees its VNB margin expanding to 25.5% by FY28E, supported by a diversified product mix, higher sum assured and improving rider attachments.
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Motilal Oswal Report
HDFC AMC and HDFC Life Insurance have retained Motilal Oswal's bullish view following their Q2 FY27 performances, with the brokerage reiterating its ‘Buy' ratings on both stocks. The brokerage has set a target price of Rs 2,900 for HDFC AMC, implying 20% upside from its cited market price of Rs 2,415, while HDFC Life carries a target of Rs 680, indicating 24% upside from Rs 551.
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HDFC AMC
Motilal Oswal reiterated its Buy rating with a Rs 2,900 target price, valuing the company at 40 times FY28E core EPS. Expansion across mutual funds, SIFs, PMS and alternatives is also expected to support medium-term growth.
Motilal Oswal highlighted improving yields, operating efficiency and a favourable asset mix. The asset manager's operating revenue grew 14% YoY and 6% sequentially to around Rs 1,170 crore in Q2 FY27, while EBITDA rose 16% YoY and 9% QoQ to about Rs 930 crore.
EBITDA margin improved to 79.5% from 77.9% in the year-ago quarter. Profit after tax stood at around Rs 749 crore, up 4% YoY but down 11% sequentially.
HDFC Life
The brokerage expects HDFC Life's growth trajectory to remain at around 14% over FY26-FY28E and sees its VNB margin expanding to 25.5% by FY28E, supported by a diversified product mix, higher sum assured and improving rider attachments. It maintained its Buy rating and Rs 680 target price, based on 1.8 times FY28E embedded value.
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