JPMorgan has downgraded HDFC Asset Management Company (AMC) to ‘Neutral’ with a target price of ₹5,000, citing limited upside after the stock’s sharp 33% rally in the past three months, outperforming the NIFTY’s 10% gain.
The brokerage acknowledged that equity inflows into the mutual fund industry have remained strong over the past few years, supported by benign inflation, steady GDP growth, and accommodative monetary policy. However, JPMorgan noted a slowdown in equity inflows in the year-to-date period, which could weigh on earnings momentum.
It pointed out that while SIP (Systematic Investment Plan) flows remain resilient and are a medium-term structural driver for HDFC AMC, these positives appear to be fully priced in, with the stock currently trading at FY26/FY27 P/E of 37x/33x.
