India's HDFC Asset Management falls; brokerage flags yield and competition risks

HDFC Asset Management

21/07/2026 07:06

** HDFC Asset Management Company HDFA.NS shares fall 1.4% to 2,606.6 rupees, extending declines to a second consecutive session 
** The mutual fund manager posts 13.6% rise in quarterly revenue from operations; Net profit up about 12% YoY 
** Brokerage ICICI Securities says prospect of declining yields with AUM growth, regulation and competition remain key risks  
** Maintains "add" rating, but lowers PT to 3,016 rupees
** Says the ability to maintain flow market share and fund performance are key for multiples
** Stock trades at forward 12-months PE of 33.39 vs industry median of 31.10 
** "We believe high equity mix, low cost to AUM and past track record justify the high multiples for HDFC AMC," - brokerage
** 24 of 27 brokerages rate the stock "buy" or higher; their median PT is 3,100 rupees 
** YTD, HDFA down 2.5% 

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.Parmar@thomsonreuters.com;))