Shares of HDFC Asset Management Company surged over 4% to Rs 4,393.30 in early trade on April 21 after the company reported an 18% year-on-year rise in standalone net profit for Q4 FY25. The net profit for the March quarter stood at Rs 638 crore, up from Rs 541 crore in the corresponding quarter last year.
Revenue for the quarter grew 30% YoY to Rs 901 crore, compared to Rs 695 crore in Q4 FY24. However, other income declined by 21% YoY to Rs 123 crore. Meanwhile, total expenses during the quarter increased by 11% YoY to Rs 189.6 crore.
The company declared and paid an interim dividend of Rs 70 per equity share for FY25. HDFC AMC continues to provide asset management services to HDFC Mutual Fund and also operates in portfolio management and advisory services.
Brokerages responded with mixed but mostly positive outlooks. Jefferies retained its ‘Buy’ rating and raised the target price to Rs 5,000, citing a 36% YoY rise in operating profit. Kotak maintained a ‘Buy’ rating with a target of Rs 4,500, acknowledging solid treasury gains.
Bernstein maintained an ‘Outperform’ call with a target of Rs 4,760, while HSBC raised its target to Rs 4,100 but kept a ‘Hold’ stance. On the cautious end, Morgan Stanley kept an ‘Equal-weight’ rating with a target of Rs 3,600, citing full valuation concerns.
At Rs 4,393.30, the stock is trading near the upper end of its day range of Rs 4,205 – Rs 4,398. HDFC AMC’s market cap now stands at Rs 939.83 crore with a P/E ratio of 174.10 and dividend yield of 1.59%.
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