HDFC Asset Management Company (HDFCAMC IN) – Q1FY27 Result Update – Higher SMID may bode well if broader market rallies – BUY
Published on 16 Jul 2026
HDFCAMC saw a good quarter as revenue was a 4.7% beat due to better yield at 47bps which increased by 1.7bps QoQ (ICICIAMC +0.4bp QoQ). Opex was a miss largely due to higher other opex that included chunky CSR expense and technology cost. Positive yield movement QoQ suggests that major impact of TER change has been passed on to distributors. SIP flow fell slightly by 1.4% to INR 48.1bn (vs -4.5% for ICICIAMC). Led by strong equity performance in 3-yr bucket, market share in net flows remains 2nd highest; it was 14.6%/12.6% in FY26/Q1FY27. Near term triggers are (1) rally in broader markets that may drive better SMID returns and (2) SBIFM listing. We maintain multiple at 36x on Mar’28 core EPS but raise TP by 0.7% to INR 3,040. Retain ‘BUY’.
