1 hr ago
HDFC AMC Shares Seen Gaining 31% on Growth Catalysts
Motilal Oswal Financial Services believes HDFC AMC’s shares could rise significantly.
It gave the stock a BUY rating and a target price of Rs 3,200.
HDFC AMC manages money invested in mutual funds and other products.
The brokerage expects the company’s assets under management to grow at a mid-teens rate.
It also expects revenue, EBITDA and profit to grow strongly between FY26 and FY28.
More people are investing their savings in financial markets, which could help the company.
HDFC AMC can also attract customers through its products, distributors, banks and digital platforms.
Its alternatives business and newer investment platforms may create additional growth.
However, the stock had fallen 16% over the past year and 9% this year at the time of the report.
Motilal Oswal Financial Services reiterated its BUY rating on HDFC Asset Management Company with a target price of Rs 3,200.
The brokerage expects HDFC AMC’s assets under management to grow at a mid-teens rate over the medium term.
Revenue, EBITDA and profit after tax are projected to record FY26–28 CAGRs of 13%, 14% and 14%, respectively.
HDFC AMC’s growth opportunities include financialisation of savings, B30-city participation, SIP top-ups and broader product adoption.
Alternatives, GIFT City, the Specialized Investment Fund framework and an Employees’ Provident Fund Organisation mandate could provide additional growth avenues.
- Who
- HDFC Asset Management Company and Motilal Oswal Financial Services.
- What
- Motilal Oswal Financial Services reiterated a BUY rating and set a Rs 3,200 target price for HDFC AMC shares.
- Where
- The analysis concerns HDFC AMC’s operations and investor base in India.
- When
- The report refers to the current trading session and projections for FY26–FY28.
- Why
- The brokerage cited expected AUM growth, financialisation of savings, distribution strength, product expansion and opportunities in alternatives and newer investment platforms.
Key facts
- Target price
- Rs 3,200
- Analyst view
- BUY rating reiterated by Motilal Oswal Financial Services
- Current share price
- Approximately Rs 2,425 during the reported session
- Market capitalization
- Rs 1.03 lakh crore
- One-year performance
- Shares had declined 16%
- AUM outlook
- Expected to grow at a mid-teens rate over the medium term
- FY26–FY28 growth forecast
- Revenue CAGR of 13%, EBITDA CAGR of 14% and PAT CAGR of 14%
Quotes
MOFSL
Brokerage issuing the HDFC AMC research assessment
“We expect AUM to grow in mid-teens, while revenue/EBITDA/PAT should record FY26-28 CAGR of 13%/14%/14%. We reiterate our BUY rating on the stock with a TP of Rs 3,200 (premised on 44x FY28E Core EPS)”
businesstoday.in
Sources
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