CLSA has upgraded HDFC Asset Management Company (HDFC AMC) to “Outperform” from its previous “Hold” rating, while increasing the target price to ₹4,920 from ₹4,450. The upgrade follows better-than-expected growth in the company’s assets under management (AUM), which has significantly outpaced expectations.
The brokerage firm noted that yield moderation will occur at a softer pace moving forward, providing stability in returns. Additionally, CLSA mentioned that the recent higher tax rate was a one-off and expects normalization in the next quarter.
Another key point in the report is CLSA’s preference for asset management companies (AMC) over life insurance in the near term, emphasizing HDFC AMC’s superior positioning in the market. The firm also lifted its earnings per share (EPS) estimates by 5% to 9% for the fiscal years 2025 to 2027.
As of the latest market update, HDFC AMC’s current market price (CMP) is ₹4,560.00.
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