loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

HDFC Asset Management Company Ltd. (CMP - ₹2600, Mcap - ₹1,16,431 crore, Target - ₹3100, Buy)

ICICIdirect Research 18 Jul 2026 DISCLAIMER

HDFC AMC reported healthy performance in Q1FY27. Overall QAAUM grew to ₹9.35 lakh crore (+13% YoY, industry recorded +15% YoY). Market Share broadly stable at 11.2% (-20 bps QoQ). Equity-oriented AUM grew to ₹5.74 lakh crore, (+16% YoY, same as industry). Equity mix stood at ~66% (vs ~57% industry average).
Revenue from operations grew 14% YoY to ~₹1,100 crore, backed by yields being steady at 47 bps compared to last year. Sequentially, yields have improved by 2 bps, partly driven by an increase in proportion of equity mix (~50 bps QoQ) and better yields on equity AUM (+2 bps QoQ).
While operational performance has been steady, sequential revival in other income (₹262 crore in Q1FY27 vs ₹11.2 crore in Q4FY26) has offset higher opex resulting in 35% QoQ jump in earnings to ₹838 crore.
Focus on market share and maintain profitability remains the core strategy. Operational efficiency continues to remain strength which is expected to aid earnings trajectory. Multi-channel distribution along with focus on institutional partners, stable SIP book and strong parentage is to aid performance. Thus, we remain positive on the stock as a play to ride finanialization of savings.
We continue to view HDFC AMC as one of the best plays on India's financialization of savings within the non-lending financial space. With significant headroom for mutual fund penetration, strong parentage, a stable SIP franchise and multi-channel distribution, HDFC AMC is well positioned to capture long-term growth opportunities. In addition, higher equity mix also makes it a key beneficiary of any sustained upside in equity markets. We therefore remain positive on the stock.
 
 

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere