Buy HDFC Asset Management Company; target of Rs 2950: Prabhudas Lilladher

Prabhudas Lilladher is bullish on HDFC Asset Management Company has recommended buy rating on the stock with a target price of Rs 2950 in its research report dated January 15, 2026.

Broker Research

January 16, 2026 / 12:56 IST

Buy

Prabhudas Lilladher's research report on HDFC Asset Management Company

HDFCAMC saw a strong quarter yet again as opex was 16% below PLe while revenue was 1.0% higher. Revenue yield was better at 46.5bps (PLe 46.0bps) since equity share rose QoQ to 61.6% from 61.0% due to MTM gains in Q3FY26. Led by strong equity performance in 1/3-yr buckets, market share in net equity flows remains healthy and is second highest at 15.4% in 9MFY26 (12.9% in FY25). Hence stock market share in equity increased by 10bps QoQ to 12.93%. Due to strong pedigree and superior 3-yr performance HDFCAMC could benefit from increased flows. While industry could see a dent in profitability due to SEBI directives on TER, we expect HDFCAMC to pass on the impact to industry participants and protect profitability. We have factored a 2.5-3.0bps decline in equity yields over FY26-28E (vs 0.8bps fall in FY26).

Outlook

We raise core EPS for FY27/28E by ~1.7% and maintain TP slightly at Rs2,950 as we tweak multiple on core Sep’27 EPS to 37.0x from 37.5x. Retain ‘BUY’.

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