Motilal Oswal, Nuvama raise target on HDFC AMC post Q2; all details here

Several brokerages have made an upward revision in HDFC Asset Management Company’s (HDFC AMC’s) target after it released the September quarter (Q2FY26) results on Wednesday, during market hours. Analysts believe HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders.

 

However, HDFC AMC shares were trading 1.73 per cent lower at ₹5,658.35 per share. In comparison, BSE Sensex was up 0.44 per cent at 82,969.45.

HDFC AMC Q2 results

HDFC AMC, in Q2, reported a net profit of ₹718.2 crore, up 24 per cent year-on-year (Y-o-Y) from ₹577.2 crore a year ago. Its revenue from operations stood at ₹1,026 crore, as compared to ₹887.3 crore year-on-year (Y-o-Y), up 16 per cent.

 

 

The total expenses of the company stood at ₹246.4 crore, as compared to ₹199.2 crore Y-o-Y.   The company's board also approved issuance of bonus equity shares in the ratio of 1:1 i.e. one) new fully paid-up equity share of ₹5 each for every one fully paid-up equity share of ₹5.   ALSO READ | Nomura keeps Nifty target at 26,140, backs Swiggy, Titan, Alkem as top bets

Brokerages' view on HDFC AMC Shares

Motilal Oswal has retained ‘Buy’ on the HDFC AMC stock, raising the target to ₹6,800 per share from ₹6,500. The brokerage has also hiked its earnings estimates by 2 per cent/3 per cent/3 per cent for FY26/FY27/FY28, led by higher growth assumption in Equity asset under management (AUM).

 

In Q2, quarterly average assets under management (QAAUM) of HDFC AMC grew 16 per cent Y-o-Y and 6 per cent quarter-on-quarter (Q-o-Q) to ₹8.8 trillion.  On a QAAUM basis, the equity mix stood at 64.9 per cent in Q2FY26, as against 65.7 per cent in Q2FY25 and 64.2 per cent in Q1FY26. Closing AUM as of Q2FY26 stood at ₹8.7 trillion, up 14 per cent Y-o-Y. 

 

“With an improved market position, a diversified product portfolio across permitted segments by SEBI, multi-diversification business streams beyond MFs into Alternatives, AIFs and PMS and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders,” Motilal Oswal noted.  ALSO READ | Nuvama retains Buy on Hyundai India; expects steady growth with EV, hybrids 

Nuvama Institutional Equities has also reiterated ‘Buy’ on HDFC AMC and increased the target to ₹7,020 per share (earlier ₹6,530). 

 

“We are tweaking FY26E/27E/28E NOPLAT by -1.3%/-1.6%/-0.8%. This along with a valuation rollover to Sep-27E lifts the TP to INR7,020 (earlier INR6,530) while valuing the stock at FY27E/28E PE of 45.6x/38.8x,” Nuvama said.