HDFC AMC shares jump 2% after strong Q1 results. Should you invest?

Shares of HDFC Asset Management Company (AMC) jumped 2% to their day’s high of Rs 5,618 on the NSE 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.

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.

Should you buy, sell, or hold HDFC AMC's stock? Here’s what brokerages say:

Motilal Oswal

Motilal Oswal has maintained a Buy rating on HDFC AMC with a target price of Rs 6,400.

The 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.

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.

Nuvama

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%, respectively.

It 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.

Antique

Antique has also maintained a Buy rating with a target price of Rs 6,200.

It 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.

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)