HDFC AMC shares rally 4%; MOFSL says valuations reasonable, sees 20% upside

HDFC AMC share price target: Motilal Oswal Financial Services has maintained a 'Buy' rating on HDFC AMC shares. The brokerage sees an upside of 20 per cent in the stock

HDFC AMC share price target: Shares of HDFC Asset Management Company are in focus today after Motilal Oswal Financial Services reiterated a ‘Buy rating on the stock’, citing reasonable valuations and its leadership position in the industry. 

HDFC AMC shares snapped their three-day losing streak, rallying 4 per cent in trade. The counter opened with a 2 per cent gain at ₹2,300 and made an intraday high of ₹2,355. Around 1 PM, the counter traded close to the day’s high at ₹2,343. 

The brokerage has set a target price of ₹2,700 on HDFC AMC shares, implying an upside of nearly 20 per cent from the previous close of ₹2,254.60. 

 

Motilal Oswal said that strong systematic investment plan (SIP) inflows will keep the stock buzzing and added that HDFC AMC enjoys a robust equity franchise and resilient margins.  

The brokerage expects the asset manager to deliver a 17 per cent CAGR in AUM, with revenue, EBITDA, and profit growing at 15 per cent each over FY26–28.  READ | HDFC Bank shares rebound after 4-day fall, stock up 2%; time to buy? 

The brokerage said that HDFC AMC continues to witness strong growth in systematic flows, with SIP AUM rising 24 per cent Y-o-Y to ₹2.2 trillion. It noted that retail participation remains strong even during market volatility. Individual investors account for 69 per cent of total Monthly Average Assets Under Management (MAAUM), compared to the industry average of 60.1 per cent. This is supported by a large and growing investor base of 15.4 million unique investors and 27.7 million live accounts as of December 2025. 

HDFC AMC’s margins, it said, have remained resilient, with operating margins in the range of 33 to 36 bps, among the highest in the industry. These margins are supported by operating leverage and disciplined cost management. 

Motilal Oswal noted that HDFC AMC continues to demonstrate strong and consistent fund performance across time horizons, reinforcing distributor confidence and supporting steady retail inflows. 

On valuation, the brokerage said that HDFC AMC remains a strong player in the mutual fund industry, backed by robust financial performance, steady AUM growth, and a strong retail presence. 

While short-term market fluctuations pose challenges, the company’s long-term fundamentals remain solid, it added.  READ | Mphasis, TCS, HCLTech, Wipro: Why did Nifty IT rise 3% in trade today? 

“With an improved market position, a well-diversified product portfolio, and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders,” the brokerage said. 

“HDFC AMC shares have corrected sharply by 17 per cent over the past month, compared to a 12–15 per cent decline in listed peers, bringing valuations to more reasonable levels despite strong systematic inflows and consistent fund performance,” Motilal Oswal said. 

HDFC AMC shares have outperformed the markets in the past one year, rising 15 per cent as against 4.50 decline in the benchmark Nifty index.   ==============

  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.