Buy Aditya Birla Sun Life AMC; target of Rs 525: HDFC Securities

HDFC Securities is bullish on Aditya Birla Sun Life AMC has recommended buy rating on the stock with a target price of Rs 525 in its research report dated January 27, 2023.

Broker Research

January 31, 2023 / 16:22 IST

26 Aug, 2025 12:21

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HDFC Securities' research report on Aditya Birla Sun Life AMC

ABSLAMC reported a weak quarter, with a sequentially flat top line (4% miss), primarily due to elevated outflows and weak performance in the equity segment. While SIP flows (+1% QoQ) are holding up, growth in the SIP book lagged the industry by a mile (+6% QoQ). We are constructive on ABSLAMC’s strong and diversified distribution network; however, given the rising competitive intensity, we are concerned about its inability to arrest the equity market-share loss in the near term. We trim our FY23E/24E/25E earnings by 9/11/8% to factor in tepid equity flows, partly offset by the expected rebound in debt scheme inflows. We expect 4.9/3.8% revenue/operating profit CAGR respectively over FY22-25E, on the back of soft AUM growth, partly offset by lower yields.

Outlook

We maintain BUY with a lower TP of INR525 (implying 21x Sep24E NOPLAT + Sep-23E cash and investments).

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