HDFC Asset (HDFCAMC) | News Based Sentiment Analysis

• On October 15-16, 2024, HDFC AMC reported a strong second quarter for FY25, with net profit jumping 32% year-over-year to ₹5,769 million and total income surging 38% to ₹10,579 million. This impressive growth was fueled by a 38% increase in revenue from operations to ₹8,873 million and a 47% rise in operating profit to ₹6,881 million, demonstrating strong financial momentum.
• Assets Under Management (AUM) also saw significant growth, increasing by 7.5% to ₹7.58 lakh crore, giving HDFC AMC an 11.5% market share. Specifically, equity-oriented AUM reached ₹4.9 trillion, representing a 12.7% share, and systematic transactions exceeded 10 million, totaling ₹36.8 billion in September 2024, highlighting consistent investor activity.
• Despite the positive earnings report, analysts at Prabhudas Lilladher revised their target price downwards to Rs 4,450 from Rs 4,700 on February 27, 2025, due to a 5% average trim in core EPS for FY26/27E following a 9.4% correction in industry equity AUM between October 2024 and January 2025. The stock is currently valued at 29.0x on Sep'26 core EPS.
• Investor sentiment showed mixed signals in September 2025. While the stock traded up 0.18% to 5,575.05 on September 5, 2025, it underperformed its sector by 0.31%. Concerns were raised about a high Price to Book Value of 14.7 and a 21.15% drop in delivery volume, suggesting some waning investor enthusiasm.
• The company experienced a key personnel change with Amar Kalkundrikar appointed Fund Manager – Equities, effective August 28, 2025, and taking over management of the HDFC Multi Cap Fund on September 1, 2025, replacing Mr. Gopal Agrawal. Kalkundrikar brings over 23 years of experience in fund management, equity research, and portfolio management.
• Technical analysis as of September 5, 2025, indicated immediate support at 5,459.67 and resistance at 5,667.67, with major support at 5,346.83 and major resistance at 5,762.83. A trading range between 5,251.67 and 5,875.67 was anticipated, providing potential trading boundaries for investors.

The Investment Story: HDFC AMC delivered robust financial performance in Q2 FY25, showcasing strong AUM growth and profitability. However, analyst revisions and mixed investor sentiment suggest a more cautious outlook despite the positive results.

What It Means for Investors: The strong earnings are encouraging, but the downward price target revision and concerns about valuation and delivery volume warrant careful consideration. Investors should monitor the impact of the new fund manager and assess whether the stock can regain upward momentum.

Looking Ahead: Investors should watch for further analyst commentary, track AUM flows, and monitor the performance of the HDFC Multi Cap Fund under its new management. Observing the stock's ability to stay above the identified support levels will be crucial.

The Bottom Line: HDFC AMC remains a fundamentally strong player in the asset management industry, but recent developments suggest a period of potential consolidation. A cautious yet optimistic approach is warranted, with close attention to key performance indicators and market sentiment.