HDFC AMC share price: Which brokerage predicts the highest upside after Q1 earnings?

Following the results, the leading brokerage houses such as Motilal Oswal, Nuvama and JM Financial have all reiterated their positive view on the stock. Which brokerage sees the highest upside potential and what is driving the confidence?

What are the key factors driving the optimism? Let’s take a look –

Among the three brokerages, Motilal Oswal and JM Financial have the highest target price of Rs 3,300 on HDFC AMC. This translates to an upside potential of nearly 21% from the current market price. Nuvama has maintained a target price of Rs 3,180. This suggests an upside of around 17%.

Brokerage views on HDFC AMC

Motilal Oswal on HDFC AMC: Resilient SIP inflows and margin expansion 

HDFC AMC continues to deliver a healthy operating performance, added Motilal Oswal in its report. This is supported by resilient equity inflows, steady Systematic Investment Plan (SIP) contributions and a strong equity-oriented Asset Under Management (AUM) mix.

The brokerage noted, “We expect a ~15% CAGR in revenue, EBITDA, and PAT each, alongside 15% AUM growth over FY26-28.”

Furthermore, the report also noted that the operating margins also improved during the June quarter. This was largely due to better cost control, commission optimisation and improved operating efficiency. 

While there was some pressure on market share due to mark-to-market movements and debt fund redemptions, Motilal Oswal believes the company continues to add individual investors at a healthy pace.

The brokerage also expects HDFC AMC to benefit from its expanding product portfolio, which includes mutual funds, Exchange Traded Funds (ETFs), Portfolio Management Services (PMS), Specialised Investment Funds (SIFs) and alternative investment products, along with continued expansion of its distribution network.

Nuvama on HDFC AMC: Strong flows remain the key monitorable

As per the Nuvama report, quarterly earnings remained healthy despite some moderation in market share across certain parameters.

Nuvama has revised its FY27 and FY28 Net Operating Profit Less Adjusted Taxes (NOPLAT) estimates by 7.1% and 5.5%, respectively.

Nuvama pointed out that sustained SIP inflows continued to support business growth, although mark-to-market movements impacted quarterly Average Assets Under Management (QAAUM) growth.

The brokerage also observed that while HDFC AMC lost some market share in total and equity QAAUM during the quarter, it continued to add individual investors at a healthy pace.

According to the report, fintech platforms are becoming an increasingly important distribution channel.

Management also indicated that these platforms are being viewed as long-term partners rather than competitors.

JM Financial on HDFC AMC: Earnings quality remains healthy

JM Financial in its report noted that the company delivered a healthy operational performance during the June quarter.

It said, “HDFC AMC reported a healthy Q1FY27 operational performance.”

The brokerage noted that higher equity yields helped revenue exceed expectations. However, increased employee expenses, mainly because of higher Employee Stock Ownership Plan (ESOP) costs, limited the improvement in operating profit.

The brokerage also expects earnings to continue growing steadily over the next few years.

“In the base case, we expect a 19–20% earnings CAGR over FY26–29E,” JM Financial added.

Which brokerage is the most bullish?

While all three brokerages remain positive on HDFC AMC, Motilal Oswal and JM Financial appear to be the most optimistic. Nuvama remains constructive as well.

Despite differences in valuation, according to these brokerage reports, HDFC AMC continues to benefit from resilient SIP inflows, healthy equity-oriented assets, improving operating efficiency and a diversified product portfolio. 

All three brokerages believe the company remains well placed for long-term earnings growth.

Disclaimer: The stock target prices and brokerage ratings discussed in this article are for informational purposes only and do not constitute professional investment advice, an offer, or a solicitation to buy or sell securities. Standard market risks apply to all equity investments. Readers are strongly advised to consult a SEBI-registered financial advisor to evaluate their risk profile before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.