- HDFC AMC shares fell 5% after mixed brokerage reviews on Q1FY27 results
- Net profit rose 12% to Rs 837 crore and revenue increased 13.6% year-on-year
- Kotak Securities downgraded stock to Add, citing limited upside despite growth
Shares of HDFC Asset Management Company Ltd. fell 5% on Thursday, July 16, after brokerages stayed dividend over the AMC's April-June quarter results for fiscal 2026-27 (Q1FY27). This comes even as the AMC reported a rise in its first quarter net profit and revenue and beat Street estimates. Domestic brokerage Kotak Securities downgraded the stock to 'Add' from 'Buy' but hiked its target price to Rs 3,000 from Rs 2,950 after HDFC AMC reported a 12% rise in profit while topline grew 13.6% year-on-year.
On Thursday, shares of HDFC AMC opened at Rs 2,722.30 against a previous close of Rs 2,729.30 and extended losses by upto 5% to hit an intraday low of Rs 2,587.60 apiece on the NSE. The stock last traded 4,66% lower at Rs 2,601.90 apiece on the NSE. This compares to a 0.16% rise in the benchmark Nifty 50 index. The stock has slumped over 4% in one week, 2% in one month, and 1% on a year-to-date basis. The AMC commands a market cap of Rs 1,11,754,19 crore, as per NSE data.
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HDFC AMC Share Price Intraday
Brokerages mixed on HDFC AMC's Q1 Results
Following HDFC AMC's Q1 FY27 results, brokerages have shared slightly mixed views, balancing a steady quarter of market-driven gains against valuation and operational expense concerns. Global brokerage Morgan Stanley maintained an Overweight rating with a target price of Rs 3,065, citing a decent quarter where net profit exceeded expectations due to higher investment income, lower tax rates, and better-than-estimated revenue yields, alongside strong SIP flows.
Bernstein kept its Outperform call with a Rs 3,030 target, on the stock, noting that while a broader market bounce drove higher Assets Under Management (AuM) and a yield bump, elevated operating expenses-primarily driven by ESOP charges-dragged down overall profit growth. Taking a slightly more cautious stance on valuation, Kotak Securities downgraded the stock to 'Add' from 'Buy', despite slightly hiking its target price to Rs 3,000 from Rs 2,950.
The domestic brokerage highlighted that the strong execution is already priced in, leaving limited upside for HDFC AMC stock. This comes even as the AMC's core earnings grew 10% year-over-year in the June quarter, blended yields improved, and the equity mix expanded 100 basis points sequentially with margins holding firm despite the regulatory changes.
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HDFC AMC Q1 Results
HDFC Asset Management Company's net profit for the first quarter of financial year 2027 rose 12% year-on-year.
The AMC posted a consolidated bottom-line of Rs 837 crore, compared to Rs 748 crore in the year-ago period. Revenue from operations grew 13.6% to Rs 1,100 crore from Rs 968 crore in the corresponding period of last year.
Quarterly Assets Under Management (QAAUM) grew 13% to Rs 9.35 lakh crore, with an 11.2% market share in the mutual fund industry. Actively managed equity QAAUM stood at Rs 5.74 lakh crore, with a 12.8% market share.
Distribution network expanded to over 1.1 lakh partners across 280 offices, including 196 in B-30 locations. Individual investors contributed 69% of monthly average AUM, versus the industry's 61%.
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