HDFC AMC Q2 Results Review - Ticks Most Boxes But Upside Capped: Centrum

Centrum Broking Report

HDFC Asset Management Company Ltd. had a strong quarter with quarterly average asset under management increasing 45% YoY to Rs 7.6 trillion, with actively managed equity market having a 63% YoY increase to Rs 4.7 trillion.

The overall market share increased 30 bps YoY at 11.5% and actively managed equity QAAUM growing 50bps YoY to 12.9%. Yield stood at 47 bps at end Q2 FY25 (46 bps in H1 FY25). PAT grew 32% YoY to Rs 5.8 billion impacted by higher taxes (one-off) announced in the budget.

The distributor commission was rationalized with effect from August. We roll over valuation to Sep’26 with a revised target price of Rs 4,545 (versus Rs 4,075 earlier), valuing the company at an unchanged multiple of 36 times. Maintain the Reduce rating owing to expensive valuations.

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