Buy HDFC AMC; target of Rs 6800: Motilal Oswal

Motilal Oswal is bullish on HDFC AMC has recommended buy rating on the stock with a target price of Rs 6800 in its research report dated October 15, 2025.

Broker Research

October 17, 2025 / 11:40 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on HDFC AMC

HDFC AMC’s operating revenue grew 16% YoY/6% QoQ to INR10.3b (in line) in 2QFY26. Yields came in at 46.6bp vs. 46.8bp in 2QFY25 and 46.7bp in 1QFY26. For 1HFY26, revenue grew 20% YoY to INR20b. Total opex rose 23% YoY/16% QoQ to INR2.3b, driven by 29% YoY growth in employee costs and 16% YoY growth in other expenses. EBIDTA came in at INR8b, up 14% YoY. EBIDTA margin was 78% vs. 79% in 2QFY25 and 80% in 1QFY26. For 1HFY26, EBITDA came in at INR15.7b, up 21% YoY PAT was up 25% YoY/down 4% QoQ at INR7.2b (9% beat mainly driven by the reversal of INR468m in income tax provisions of earlier years); excluding this one-off benefit, PAT would have been INR6.7b. For 1HFY26, PAT came in at INR14.7b, up 24% YoY.

Outlook

We have raised our earnings estimates by 2%/3%/3% for FY26/FY27/FY28, led by a higher growth assumption in Equity AUM. We maintain our BUY rating on the stock with a TP of INR6,800 (premised on 41x Sep’27E EPS).

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