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HDFC AMC - Undeterred flows - Market recovery spur AUM Growth

ICICIdirect Research 18 Jul 2025 DISCLAIMER

HDFC AMC reported healthy set of Q1 result on the back of improved capital market conditions. Market share and yields across asset classes was broadly maintained. Average AUM grew 7.1% QoQ to ₹ 8.3 tn with market share of 11.5%. Flows to MF industry have been resilient considering market volatility in H1CY25.
SIP run-rate for industry has surpassed monthly run-rate of Rs 27,000 cr with HDFC AMC having strong market share of 13%+. Backed by positive experience, the number of contributing SIPs at industry level has increased from 6.7 cr in June 2024 to 8.6 cr in June 2025. Such traction at industry level is flowing into AUM growth for HDFC AMC which has strong presence here.
In terms of P&L performance, HDFC AMC’s revenue grew 25% YoY, 7.4% QoQ with yield as % of AUM at 46.7 bps vs 46.6 bps in Q4.
EBITDA grew by healthy 30% YoY, 5.9% QoQ while PAT grew 24% YoY, 17.1% QoQ to Rs 748 cr boosted by MTM gains on both equity and debt investment book. PAT as % of AUM was recorded at industry leading level of 36 bps, improving 3 bps QoQ.
Overall, HDFC AMC is a direct play on structural MF growth story with its superior operational strength. Multi-channel distribution, long-term performance track record, healthy SIP book and strong parentage makes HDFC AMC better positioned to sail through across market cycles. Asset light business model, long term business visibility and healthy return rations shall keep its valuation enriched. We value the company at 40x FY27E EPS with a target price of Rs 6500 and maintain BUY rating on the stock.

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