HDFC Asset Management Company (AMC) remains in the spotlight with mixed ratings from major brokerages. Here’s a detailed look at their recommendations and analysis:
Nomura: Buy | Target Price ₹5,250
- Nomura sees a 34.72% upside from the current price of ₹3,899.05.
- Key drivers include higher operating revenue and lower operating expenses, leading to a 6% beat in operating profit.
- EPS estimates for FY25-27 have been raised by 2-3%, with a projected operating profit CAGR of 20% over FY25-27.
- However, SIP flow market share declined by 60 basis points quarter-on-quarter.
HSBC: Hold | Target Price ₹4,350
- HSBC highlights strong profit growth in Q3, driven by rationalisation of commission payouts and controlled operating costs.
- The brokerage expects an 11.57% upside from the current price.
- Concerns include stagnating equity AUM and SIP flows, which may pressure valuations.
- EPS for FY25-27 is raised by 0.4-4.1%.
CITI: Sell | Target Price ₹3,700
- CITI recommends selling the stock, indicating a 5.11% downside from the current price.
- Despite robust core earnings growth of +8% QoQ, equity market trends remain sluggish.
- Cost control and back book repricing were key drivers for the quarter.
Morgan Stanley: Equal-weight | Target Price ₹4,120
- Morgan Stanley maintains an equal-weight rating with a 5.67% upside potential.
- The beat in operating profit is attributed to higher equity yields and cost control measures.
- Revenue and PAT growth are expected to moderate to 16% by FY26.
Jefferies: Buy | Target Price ₹5,000
- Jefferies highlights a 28.20% upside from the current price.
- Strong operating performance was aided by higher yields, although lower investment income moderated overall earnings.
- Industry net inflows remain strong, but market share trends and scheme performances need close monitoring.
Brokerages are divided on HDFC AMC, with target prices ranging from ₹3,700 to ₹5,250. While Nomura and Jefferies are optimistic about long-term growth, HSBC and Morgan Stanley remain cautious, and CITI advises selling. Investors should weigh these factors against their investment goals.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
