HDFC AMC has 35% upside potential

[Pee Vee]

HDFC AMC sees improvement in yield, cost control boost margins. Increasing share of equity in overall AUM will help to mitigate potential decline in yields. Scale benefits from new businesses expected to translate into higher profitability. TP ₹5200 (35%)

The management guides to improve its market share and become the leader in the existing product offerings rather than focusing on bringing more new products to the bouquet. Additionally, expenses are expected to grow in the range of 12-15% YoY.

 We have largely kept our estimates unchanged. We maintain our BUY rating on the stock with a TP of INR5,200 (premised on 42x Sep’26E Core EPS).