HDFC Asset Management shares surge on Q4 earnings, here's what brokerages say  

Shares of HDFC Asset Management Company Ltd (HDFC AMC) rose 7 percent on Monday after the mutual fund company logged a 18% rise in net profit for the March 2025 quarter. HDFC AMC shares climbed 6.68% to Rs 4497.90 against the previous close of Rs 4216.20 on BSE. Market cap of the firm rose to Rs 95,403 crore. 

The AMC's standalone net profit climbed 18 percent year-on-year (YoY) to Rs 638 crore in Q4 compared to Rs 541 crore in the same quarter of the previous financial year.

Revenue climbed 30 percent YoY to Rs 901 crore in Q4FY25 from Rs 695 crore in Q4FY24. However, other income slipped 21 percent YoY to Rs 123 crore in Q3FY25.

The company’s total expenses climbed 11 percent YoY to Rs 189.6 crore in the March 2025 quarter compared to Rs 171 crore in the corresponding quarter last year.

Earnings per share stood at Rs 29.88 in the last quarter against Rs 25.35 in the Q4 of the previous fiscal.

Operating profit for the quarter ended March 31, 2025 was Rs 711.5 crore in Q4 compared to Rs 523.6 crore for the quarter ended March 31, 2024. Profit before tax in Q4 was Rs 835.2 crore compared to Rs 679.1 crore for the quarter ended March 31, 2024.

Motilal Oswal has assigned a target price of Rs 5,000 to the stock, which indicates 13.5 percent upside from the current levels.

"Despite weak market sentiment, industry-level gross SIP flows declined just 2% QoQ in Mar’25 but rose 25% YoY. Management remains optimistic about a pickup in flow trends, noting that the company’s decline in SIP flows was lower than the industry average," said the brokerage firm.

Brokerage Prabhudas Lilladher has raised its price target to Rs 4,600 from Rs 4,450 on the mutual fund stock. "We keep multiple at 35x but increase TP to as we roll forward to Mar’27 core EPS. Retain ‘BUY’.

"Closing equity AUMs for the industry corrected by 3% over December 2024- March 2025 and markets continue to remain volatile. Equity flows for the industry have contracted to Rs 272 billion in March 2025 quarter from Rs 462 bn in December 2024 quarter. Owing to lower expected industry flows and higher staff cost in FY26/27E, we cut core EPS for FY26/27E by 3.3%," said Prabhudas Lilladher. 

HDFC AMC is engaged in the business of providing asset management services to HDFC Mutual Fund, as well as alternative investment funds. It also offers portfolio management and advisory services to clients.