HSBC has maintained its ‘hold’ rating on HDFC AMC stock with a target price of ₹4,350, citing caution over downside risks to its assets under management (AUM) and earnings per share (EPS) growth estimates amid a cyclical downturn. The brokerage noted that HDFC AMC’s stock return has outperformed its peers year-to-date due to market share gains in most of its large schemes.
However, HSBC expressed caution as it sees high downside risks to its AUM and EPS growth estimates, anticipating a muted EPS CAGR of 11% over FY25-27. The brokerage also pointed out that valuations appear punchy given the expected moderate earnings growth.
Yesterday’s stock price performance:
On February 27, HDFC AMC’s share price closed at ₹3,670.00, down by ₹95.25 or 2.53%. The decline reflects investor caution, aligning with HSBC’s cautious outlook on the company’s growth prospects amid a challenging market environment.
Disclaimer: The views and investment tips expressed by investment experts on Business Upturn are their own and not those of the website or its management. Business Upturn advises users to check with certified experts before taking any investment decisions.
