HDFC Asset Management Company (HDFCAMC IN) – Analyst Meet Update – Structural play on formalization of the economy – BUY
Published on 09 Sep 2026
HDFCAMC’s senior management sounded sanguine about industry growth prospects driven by formalization of the economy. It continues to gain share in unique investor count that saw healthy 3.3-year CAGR of 33% (industry 16%). Relationship with HDFCB has structurally improved with closer alignment across teams; bank contributes <30% in SIP flows. Alternates business is expected to scale up with most of the hiring done. While 1-year equity performance has weakened, 3-year returns remain strong, which is driving the highest net flow market share of ~12% (Apr-Jul’26). Due to lower industry equity AAuM growth, we cut core PAT by ~4% for FY27/28E each. We tweak multiple to 35x on Mar’28 core EPS and trim TP to INR2,850 from INR3,040. Retain ‘BUY’.
