Latest news with #HDFCAssetManagementCompany
Mint
6 days ago
- Business
- Mint
HDFC AMC hits record high on strong Q1 results; is it the right time to buy? Here's what brokerages say
Shares of HDFC Asset Management Company (HDFC AMC) surged 2 percent to touch an all-time high of ₹ 5,625 following the announcement of strong first-quarter earnings for FY26. The asset management giant impressed both investors and analysts with its solid performance, backed by healthy revenue growth, rising profits, and expanding assets under management (AUM). For the quarter ended June 30, 2025, HDFC AMC reported a 24 percent year-on-year increase in net profit to ₹ 748 crore, up from ₹ 604 crore in the same quarter last year. Revenue from operations also grew by 25 percent to ₹ 968 crore. One of the key highlights of the quarter was the significant growth in average assets under management, which rose 23 percent YoY to ₹ 8.3 lakh crore from ₹ 6.71 lakh crore in the previous year. This financial strength has propelled the stock up more than 59 percent from its 52-week low of ₹ 3,525 touched in April 2025. Over the past year, HDFC AMC's shares have gained around 35 percent, supported by market optimism and consistent business expansion. Motilal Oswal Financial Services has reiterated its 'Buy' rating on HDFC AMC, assigning a revised target price of ₹ 6,400 (almost 14 percent upside potential). The brokerage stated that revenue for the quarter came in at ₹ 970 crore, marking a 25 percent YoY and 7 percent QoQ growth, in line with expectations. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 30 percent YoY to ₹ 770 crore. The EBITDA margin expanded to 80 percent compared to 77 percent a year earlier. Net profit at ₹ 750 crore surpassed estimates by nearly 9.5 percent, helped by better operating performance and higher other income. Motilal Oswal also noted the company's application to SEBI for launching Specialised Investment Funds (SIFs), signaling further business diversification. The brokerage raised its earnings per share (EPS) estimates for FY26 and FY27 by 3 percent each. Global brokerage Morgan Stanley described the quarter as 'good,' with HDFC AMC's PAT exceeding its estimate by 7 percent and the Street's consensus by 9–10 percent. The outperformance was attributed to better investment income and stronger revenue yields. While operating profit met expectations, Morgan Stanley highlighted that the revenue yield held up better than anticipated, helped by the continuation of commission rationalisation initiatives undertaken in FY25. The brokerage revised its price target from ₹ 4,470 to ₹ 4,910, citing stronger SIP flows and improved yield projections. It also raised its FY26–28 PAT estimates by 2–8 percent and expects profit growth of 19 percent in FY26, down from 27 percent in FY25. However, despite the optimistic outlook, Morgan Stanley maintained an 'Equal Weight' rating due to valuation concerns. 'We find valuation expensive at 35x FY27 PE, though this could sustain in the short term on strong investor sentiment,' it added. Jefferies echoed bullish sentiment, reiterating its 'Buy' rating and hiking the target price to ₹ 6,100 from ₹ 5,000. The brokerage noted that the Q1 PAT of ₹ 748 crore beat estimates, aided by better-than-expected core revenues and higher other income. Jefferies pointed to steady SIP flows, solid inflows in debt and liquid funds, and a rebound in equity markets as key drivers. Equity assets rose 12 percent sequentially, while the market share in equity QAAUM remained stable at 12.8 percent. However, the brokerage cautioned about a potential drag on earnings due to non-cash costs related to employee stock options (ESOPs) and PSU provisioning expected from Q2 onward. This could raise operating expenses by 10–15 percent, though overall employee costs remain low at around 6 basis points of AUM. Looking ahead, Jefferies expects HDFC AMC to deliver a 16 percent CAGR in operating profits over FY25–28, supported by a 23 percent AUM CAGR. While moderate other income could limit net earnings growth to around 15 percent, the long-term fundamentals remain robust, the brokerage said. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
6 days ago
- Business
- Business Standard
HDFC AMC hits record high; time to buy, book profits or stay invested?
HDFC Asset Management Company (HDFC AMC) shares rose 5 per cent in two days after the company released its Q1 results. The scrip touched an all-time high on BSE at ₹5,619.6 per share on Friday, July 18, 2025. At 9:23 AM, HDFC AMC share price was trading 1.72 per cent higher at ₹5,605.2 per share on the BSE. In comparison, the BSE Sensex was down 0.18 per cent at 82,113.6. The company's market capitalisation stood at ₹1,19,900.58 crore. The 52-week high of the stock was at ₹5,619.6 per share, and the 52-week low of the stock was at ₹3,525.05 per share. HDFC AMC Q1 results analysis: Motilal Oswal| Buy | Target raised to ₹6,400 from ₹6,000 HDFC AMC's Q1 numbers were inline with the brokerage's estimates. The company's operating revenue grew 25 per cent/ 7 per cent Y-o-Y/Q-o-Q to ₹970 crore which was inline with estimates. Earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter was at ₹770 crore, up 30 per cent Y-o-Y and Ebitda margins were at 80 per cent as against 77 per cent in Q1FY25 and 81 per cent in Q4FY25. Motilal Oswal has raised its earnings estimates by 3 per cent each for FY26/FY27, reflecting strong 1QFY26 performance and stable AUM growth. HDFC AMC Q1FY26 results analysis: Nuvama Institutional Equities | Buy | Target raised to ₹6,530 from ₹5,840 Bolstered by sustained flows, improved market outlook and strong execution, the brokerage raised its FY26E/27E/28E NOPLAT by 6.7 per cent/7.1 per cent/5.5 per cent. HDFC AMC Q1 results The company on Thursday, in market hours, reported a net profit of ₹748 crore for Q1FY26, up 24 per cent, from ₹604 crore a year ago. Sequentially, net profit rose 17 per cent from ₹639 crore in the March quarter (Q4FY25). The company's total revenue in Q1 rose 27 per cent year-on-year (Y-o-Y) to ₹1,201 crore. Sequentially, revenue was up 17 per cent. The fund house's quarterly average assets under management market share stood at 11.5 per cent in the June quarter, the company said in a statement. It added that its mutual fund schemes processed over 12 million systematic transactions in June with a value of over ₹4,000 crore.
Economic Times
6 days ago
- Business
- Economic Times
HDFC AMC shares in focus after strong Q1 results. Should you invest?
Shares of HDFC Asset Management Company (AMC) will be in focus on Friday after the firm reported a 24% year-on-year rise in profit after tax to Rs 748 crore for the quarter ended June 2025. In the same quarter last year, the company had reported a PAT of Rs 604 crore. ADVERTISEMENT Revenue from operations rose 25% to Rs 968 crore from Rs 775.2 crore a year ago, according to the company's filing with the stock exchanges. The average assets under management (AAUM) for the quarter stood at Rs 8.3 lakh crore, up from Rs 6.71 lakh crore in the corresponding quarter of the previous fiscal. Motilal Oswal has maintained a Buy rating on HDFC AMC with a target price of Rs 6, brokerage noted that revenue at Rs 970 crore was up 25% YoY and 7% QoQ, in line with estimates. EBITDA rose 30% YoY to Rs 770 crore, with margins expanding to 80% from 77% a year ago. ADVERTISEMENT PAT stood at Rs 750 crore, up 24% YoY and 17% QoQ, beating estimates by 9.5%. Other income also contributed positively to the bottom line. The company has also applied to Sebi to launch Specialised Investment Funds (SIFs). Motilal Oswal raised its EPS estimates for FY26 and FY27 by 3% each. ADVERTISEMENT Nuvama has retained its Buy rating and raised the target price from Rs 5,840 to Rs 6,530, citing strong fund flows, a positive market outlook, and robust execution. The brokerage revised its FY26, FY27, and FY28 NOPLAT estimates upward by 6.7%, 7.1%, and 5.5%, noted that HDFC AMC continues to outperform on flow share relative to AUM share. The stock is now valued at 47.5x FY26E and 41.6x FY27E price-to-earnings. ADVERTISEMENT Antique has also maintained a Buy rating with a target price of Rs 6, pointed out a yield surprise despite rising AUM and credited the company's consistent delivery, high equity mix, and strong brand positioning for supporting premium valuations. ADVERTISEMENT The brokerage expects an 18% CAGR in AAUM and a 16–17% CAGR in PAT over FY25–28. It also estimates that PAT for FY26–28 could be around 10% ahead of consensus. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Business Standard
7 days ago
- Business
- Business Standard
HDFC Asset Management Company consolidated net profit rises 23.82% in the June 2025 quarter
Sales rise 24.88% to Rs 968.15 croreNet profit of HDFC Asset Management Company rose 23.82% to Rs 747.55 crore in the quarter ended June 2025 as against Rs 603.76 crore during the previous quarter ended June 2024. Sales rose 24.88% to Rs 968.15 crore in the quarter ended June 2025 as against Rs 775.24 crore during the previous quarter ended June EndedJun. 2025Jun. 2024% 25 OPM %79.8476.67 -PBDT1002.95765.52 31 PBT985.68752.25 31 NP747.55603.76 24 Powered by Capital Market - Live News
Business Standard
7 days ago
- Business
- Business Standard
HDFC AMC rallies after Q1 PAT jumps 24% YoY to Rs 748 cr
HDFC Asset Management Company added 2.73% to Rs 5,442.95 after the company's standalone net profit rose 23.83% to Rs 747.92 crore on 26.58% surge in total income to Rs 1,200.44 crore in Q1 FY26 over Q1 FY25. Revenue from operations in the first quarter of FY26 stood at Rs 967.76 crore, registering a growth of 24.83% year on year (YoY). Profit before tax in the June 2025 quarter stood at Rs 986.05 crore, up 31.04% year on year. Operating profit for the quarter ended 30 June 2025 was Rs 753.40 crore, up 30.05% from Rs 579.30 crore posted in the same period a year ago. The AMC had a QAAUM (quarterly average assets under management) of Rs 8,28,600 crore as of 30 June 2025 compared to Rs 6,12,900 crore as of 30 June 2024 and its market share was 11.5% in QAAUM of the mutual fund industry. QAAUM in actively managed equity-oriented funds, i.e., equity-oriented QAAUM excluding index funds, stood at Rs 4,96,300 crore for the quarter ended 30 June 2025, with a market share of 12.8%. The AMC is amongst the largest actively managed equity-oriented mutual fund managers in the country. The ratio of equity and non-equity oriented QAAUM is 64:36, compared to the industry ratio of 56:44 for the quarter ended 30 June 2025. As of June 2025, 70% of the companys total monthly average AUM is contributed by individual investors compared to 61% for the industry. According to the company, 12.03 million systematic transactions with a value of Rs 4,010 crore were processed during the month of June 2025. As on 30 June 2025, total live accounts stood at 24.3 million as on 30 June 2025. Unique customers as identified by PAN or PEKRN now stands at 13.7 million as on 30 June 2025 compared to 55.3 million for the industry, a penetration of 25%. HDFC Asset Management Company (HDFC AMC) is the investment manager of HDFC Mutual Fund, one of the largest mutual funds in the country. The AMC has a diversified asset class mix across equity and fixed income/others. It also has a countrywide network of branches along with a diversified distribution network comprising banks, independent financial advisors, and national distributors.
