HDFC AMC Q2 Results Review - Earnings Upgrade Continues Owing To Equity: PL Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..PL Capital Report.HDFC Asset Management Company Ltd. saw a good quarter as revenue was 2.8% higher than our estimate owing to better-than-expected yields at 46.8 basis points (our estimate: 45.5 bps) led by strong growth in equity quarterly average assets under management of 14.8% QoQ to Rs 4.7 trillion, which resulted in core income beat of 2.5%. Yields inched up QoQ as the company rationalized net yields in Aug-24 and Sep-24 across 10-12 schemes. Core PAT was a miss due to DTL impact. Equity performance within the one-year and three-year buckets remains best-in-class, which resulted in strong net flows’ market share of 14.6% in H1 FY25. We raise core EPS for FY25E/FY26E by ~8% each due to upgrade in FY25E closing equity AuM for the industry from 27% earlier to 40% since equity growth from Mar-Sep’24 has been strong at 30% (8% flows and 22% markt to market). Over FY24-26E, we see healthy core PAT CAGR of 27% (earlier 22%). Stock is valued at 34 times on Sep’26 core EPS. We maintain multiple at 41 times, but raise target price to Rs 5,360 from Rs 4,700 as we roll forward to Sep’26. Reiterate ‘Buy’.Click on the attachment to read the full report:.HDFC AMC Share Price Hits Record After Analysts Upgrade Rating, Target Price On Q2 Results.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC AMC Q2 Results Review - Earnings Upgrade Continues Owing To Equity: PL Capital

Healthy equity growth and rationalisation in yields led to higher revenue, says the brokerage.

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