HDFC AMC Q3 Review — 'Buy' The Stock Says Motilal Oswal On Improved Yield, Cost Control; Sees 35% Upside

HDFC AMC's increasing share of equity in the overall AUM, driven by an anticipated higher CAGR of 30% in equity AUM versus overall AUM CAGR of 24%, will help to mitigate the potential decline in yields. .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. .Motilal Oswal Report.HDFC Asset Management Company Ltd.'s Q3 FY25 operating revenue grew 39% YoY/5% QoQ to Rs 9.3 billion (in line with estimate). The sequential growth was driven by AUM growth and a 0.7 bp QoQ improvement in yield to 47.5 bp (1.1 bp YoY decline). For 9MFY25, operating revenue grew 37% YoY to Rs 26 billion. Total opex grew 7% YoY to Rs 1.7 billion (10% lower than estimate), driven by 6% YoY growth in employee costs (2% lower than estimate) and 8% YoY growth in other expenses (19% lower than estimate).Better-than-expected operational efficiency resulted in 49% YoY growth in Ebitda to Rs 7.6 billion (6% beat). Ebitda margin came in at 81.7% versus 79.3% in Q2 FY25 and 76.2% in Q3 FY24.Operational efficiency resulted in 31% YoY/11% QoQ growth in PAT to Rs 6.4 billion (6% beat). For 9MFY25, PAT grew 30% YoY to Rs 18.2 billion.The management guides to improve its market share and become the leader in the existing product offerings rather than focusing on bringing more new products to the bouquet. Additionally, expenses are expected to grow in the range of 12-15% YoY. We have largely kept our estimates unchanged. We maintain our Buy rating on the stock with a target price of Rs 5,200 (premised on 42x Sep’26E Core earnings per share)..Click on the attachment to read the full report:.HDFC AMC Q3 Results Review - Yes Securities Recommends 'Add' On The Stock; Sees 16% Upside; Here's Why.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 Q3 Review — 'Buy' The Stock Says Motilal Oswal On Improved Yield, Cost Control; Sees 35% Upside

Motila Oswal expect scale benefits from new businesses (alternates and passives) to translate into higher profitability.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP