Buy HDFC AMC; target of Rs 3200: Motilal Oswal

Motilal Oswal is bullish on HDFC AMC has recommended buy rating on the stock with a target price of Rs 3200 in its research report dated January 15, 2026.

Broker Research

January 19, 2026 / 21:11 IST

Buy

Motilal Oswal's research report on HDFC AMC

HDFC AMC’s operating revenue grew 15% YoY/5% QoQ to INR10.8b (in line). Yields came in at 46.5bp in 3QFY26 vs. 47.5bp in 3QFY25 and 46.6bp in 2QFY26. For 9MFY26, revenue grew 18% YoY to INR30.7b. Total opex at INR2b grew 16% YoY but was down 12% QoQ. Employee costs at INR1.2b were up 30% YoY but flat QoQ, while other expenses at INR730m were down 2% YoY/28% QoQ. EBITDA came in at INR8.8b, up 15% YoY/9% QoQ. The EBITDA margin was 81.5% vs. 81.7% in 3QFY25 and 77.9% in 2QFY26. For 9MFY26, EBITDA came in at INR24.5b, up 19% YoY.

Outlook

We broadly maintain our earnings estimates for FY26/FY27/FY28. We expect a 16% CAGR each in revenue/EBITDA/PAT and an 18% AUM CAGR over FY25-28E. We reiterate our BUY rating on the stock with a TP of INR3,200 (premised on 42x FY28E core EPS).

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