Morgan Stanley has maintained its equal-weight (EW) rating on HDFC Asset Management Company (HDFC AMC) with a target price of ₹4,120. The company’s operating profit came in line with estimates, while the pre-tax profit (PBT) surpassed expectations, driven by higher other income. However, the profit after tax (PAT) was lower due to higher taxes following changes introduced in the Union Budget.
One of the key positives in the report was the improvement in yields quarter-on-quarter (QoQ) as HDFC AMC rationalized commissions. Despite this, the stock’s elevated valuation has led Morgan Stanley to maintain its EW rating.
As of the latest update, HDFC AMC’s current market price (CMP) stands at ₹4,560.00.
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