The shares of HDFC Asset Management Company jumped nearly 3 percent to hit a record high on October 16 after brokerages issued positive notes following its Q2 earnings and bonus issue announcement.
The shares hit a fresh 52-week high of Rs 5,934.5 apiece on Thursday. The stock then erased gains to trade in the red with marginal losses.
HDFC AMC Q2 results:
HDFC Asset Management Company reported a net profit of Rs 718.43 crore for the second quarter of the financial year 2026. This marks a rise of nearly 25 percent year-on-year (YoY) from the Rs 576.61 crore net profit reported in the same period last year.
The firm’s revenue from operations meanwhile rose around 16 percent YoY to Rs 1,027.40 crore during the quarter under review. It had earlier reported revenue from operations at Rs 887.21 crore in the corresponding quarter of the previous financial year.
The firm's assets under management (AUM) rose 14 percent on-year to Rs 8.73 lakh crore by the end of Q2 FY26. Its number of live individual accounts meanwhile rose 26 percent YoY to 25.94 million.
HDFC AMC Bonus issue:
Along with the Q2 FY26 results, HDFC AMC announced a bonus issue in the ratio of 1:1. Notably, this is the first-ever bonus issue announced by the company. The record date to determine the eligibility of the shareholders set to receive the payment has been set at November 26.
This means that shareholders owning shares of the company as on the record date, will get one bonus share for every share they hold.
Should you buy, sell or hold?
HSBC has a 'Hold' call on the stock, with a target price of Rs 4,920 per share. This implies a downside potential of nearly 15 percent from the stock's previous closing price of Rs 5,764 apiece.
The brokerage noted that the Q2 FY26 operating performance was largely in line with estimates. Higher treasury gains and tax write-back led to profit after tax beating estimates. Buoyant markets and AUM market share gains are key catalysts, it added.
Motilal Oswal raised the target price on the stock to Rs 6,800 per share from Rs 5,764 per share, while maintaining its 'Buy' call on the stock. The latest target price implies an upside potential of nearly 18 percent from the stock's previous closing price.
Motilal said that with improved market position, diversified product portfolio and digital expansion efforts, the company is well positioned to sustain growth and deliver value to stakeholders.
Nuvama also maintained its 'Buy' call on the stock, while raising its target price to Rs 7,200 per share from Rs 6,530 per share. The latest target price implies an upside potential of nearly 25 percent from the stock’s previous closing price.
CLSA meanwhile said that flows and profitability remain intact. It raised PAT estimates by 2 percent-5 percent, driven by higher AUM growth. The international brokerage increased its target price for the stock to Rs 6,000 apiece, from Rs 5,670 apiece. This implies an upside potential of more than 4 percent from its previous closing price.
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