HDFC AMC Sees Surge in SIP Flows, Raises Target Price to Rs 6,530 Amid Robust Industry Active Equity Inflows.

Nuvama Institutional Equities has raised HDFC AMC's target price to Rs 6,530 from Rs 5,840, maintaining its 'Buy' rating. The brokerage notes sustained flows, improved market outlook, and strong execution, with equity AUM growth of 23.2% YoY and revenue expansion of 25% YoY. Estimates for FY26, FY27, and FY28 have been raised by 6.7%, 7.1%, and 5.5% respectively. HDFC AMC has also applied for an SIF license and is focused on designing products in line with its investment philosophy.

Title: Brokerage Nuvama Raises Target Price for HDFC AMC, Maintaining 'Buy' Rating

July 2, 2025 - Nuvama Institutional Equities has increased the target price for HDFC Asset Management Company (HDFC AMC) to Rs 6,530 from Rs 5,840, while maintaining its 'Buy' rating. The brokerage attributed the move to sustained inflows, a positive market outlook, and strong execution. The company reported a 23.2% year-on-year (YoY) growth in equity assets under management (AUM) and a 25% YoY increase in revenue. Nuvama has also raised its earnings estimates for FY26, FY27, and FY28 by 6.7%, 7.1%, and 5.5% respectively [2].

HDFC AMC's strong Q1 performance has been a significant driver for the target price increase. The company reported a 24% YoY increase in net profit to Rs 748 crore and a 25% YoY growth in revenue to Rs 968 crore. The asset management giant also saw a 23% YoY increase in AUM to Rs 8.3 lakh crore. This financial strength has propelled HDFC AMC's shares to an all-time high of Rs 5,625, up 59% from its 52-week low of Rs 3,525 [2].

Nuvama's positive outlook is supported by HDFC AMC's application for a Specialised Investment Funds (SIF) license and its focus on designing products aligned with its investment philosophy. The brokerage expects HDFC AMC to deliver a 16% compound annual growth rate (CAGR) in operating profits over the next three years, driven by a 23% AUM CAGR. While moderate other income could limit net earnings growth to around 15%, the long-term fundamentals remain robust [2].

The brokerage's optimism is shared by other financial institutions. Motilal Oswal Financial Services has reiterated its 'Buy' rating with a target price of Rs 6,400, while Global brokerage Morgan Stanley has revised its price target to Rs 4,910 and Jefferies has raised its target to Rs 6,100 [2].

In conclusion, Nuvama's revised target price for HDFC AMC reflects the company's strong performance and positive outlook. Investors should closely monitor HDFC AMC's progress and the broader market conditions to make informed investment decisions.

References:
[1] https://m.economictimes.com/markets/stocks/news/buy-sell-or-hold-nuvama-maintains-hold-rating-on-wipro-antique-retains-buy-call-on-hdfc-amc-post-q1-results/articleshow/122726314.cms
[2] https://www.livemint.com/market/stock-market-news/hdfc-amc-hits-record-high-on-strong-q1-results-is-it-the-right-time-to-buy-heres-what-brokerages-say-11752823342085.html