Shares of HDFC AMC will remain in focus today, April 17 as Jefferies has hiked target price of the stock following the declaration of the fourth quarter earnings. The brokerage, in its recent note has revised the target price to Rs 3,090, marking a 16% upside from the last closing price of Rs 2663.7 on NSE and mainatined 'Buy' rating on the stock.
HDFC AMC's earnings for the quarter ended on March 31, 2026 saw profit take a 19% sequential hit, while total income tumbled as much as 13.4% to Rs 1,063 crore. The 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 driven by gold or silver ETFs, however liquid and debt-oriented schemes underperformed.
Equity-oriented schemes grew primarily inline with overall AUM, while the note expects slower growth in average AUM over FY27 of 9%.
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The company indicated investors bought the dip in March 2026. The note stated that investors used market corrections to allocate more.
Active equity flow market share continues to grow ahead of book, indicating a 15% flow share in March 26. Notably, 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.
Jefferies' also expects that HDFC AMC may have a limited impact of total expense ratio (TER) changes. It further cited the company's calculation of a 3-4bps gross impact on its existing book from the new base expense ratio (BER) regulations effective 1st Apr'26.
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