Shares of HDFC AMC surged nearly 5% on Friday, April 17 as brokerages revised target price and gave a 'Buy' call on the stock following the declaration of the fourth quarter earnings.
HDFC AMC share price advanced 4.91% intraday to Rs 2,793 apiece. The scrip was trading 4.24% higher by 10:22 a.m. The benchmark NSE Nifty 50 was up 0.35%.
The asset management company declared the fourth quarter earnings on Thursday, April 16, along with a final dividend of Rs 54.
The company reported a 19% drop in net profit to Rs 623 crore, from Rs 769 crore, while total income droppedas much as 13.4% to Rs 1,063 crore.
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In its recent note, Jefferies revised the target price to Rs 3,090, a 16% upside from last closing price of Rs 2663.7 on NSE and mainatined 'Buy' rating on the stock. HDFC AMC's operating profit was 2% below the estimates of the brokerage. However, higher other income beat the forecasted profit after tax. Mutual fund AUM growth of 20% on an year on year basis was in line with the estimates, primarily led by by gold or silver ETFs, while liquid and debt-oriented schemes underperformed.
Equity-oriented schemes rose in line with overall AUM, while a slower growth is expected in average AUM over FY27 of 9%.
HDFC AMC mentioned investors bought the dip in March 2026, while the note said that investors used market corrections to allocate more.
It must be noted that active equity flow market share continues to grow ahead of book, relflecting a 15% flow share in March 26. The company continues its efforts to boost up alternatives, the AMC announced the first close of its private credit fund, with International Finance Corporation as a partner and anchor investor. Other income, however was 8% higher compared to estimates due to higher CSR and royalty expenses.
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