HDFC Asset Management Company (HDFC AMC) shares were in focus after global brokerage HSBC maintained a Hold rating on the stock with a target price of ₹4,920, implying a 15% downside from the current market price of ₹5,763.00. The brokerage said the company’s Q2FY26 operating performance was largely in line, though profit after tax (PAT) came in ahead of its estimates, driven by higher treasury gains and a tax write-back.
HSBC noted that HDFC AMC reported stable core operating performance during the quarter, supported by healthy traction in Systematic Investment Plan (SIP) flows, particularly through banking (banca) and digital channels. However, the brokerage pointed out that non-SIP flows remained weak, reflecting limited incremental inflows into lump-sum and non-equity categories.
The firm added that buoyant market conditions and steady AUM market share gains continue to act as key positive catalysts for the mutual fund major. Nonetheless, HSBC said valuations appear rich given the stock’s recent rally, and expects moderate earnings growth in the near term as competitive intensity in the asset management industry rises.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities. Brokerage views are based on their respective research reports and publicly available information.