Jefferies has reiterated its buy rating on HDFC Asset Management Company (HDFC AMC) with a target price of ₹5,450, citing strong second-quarter performance. The company posted a 46% year-on-year growth in pre-tax profit (PBT), supported by a 38% YoY rise in the top line, driven by a 65% YoY increase in equity quarterly average assets under management (QAAUM) and a 1 basis point (bp) QoQ improvement in yields due to the rationalization of distribution commissions across major equity schemes.
While operating expenses remained stable, with a 14% YoY and 2% QoQ increase, a higher one-time tax outflow related to legacy gains slightly moderated profit after tax (PAT) growth, which stood at 32% YoY.
The current market price (CMP) of HDFC AMC is ₹4,560.00.
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