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Nomura Maintains Buy on HDFC AMC, Cuts Target Price to Rs 3,050
M
Moneycontrol•19-10-2026, 11:34
Nomura Maintains Buy on HDFC AMC, Cuts Target Price to Rs 3,050
- •Nomura maintains a 'Buy' rating on HDFC Asset Management Company while reducing its target price from Rs 3,130 to Rs 3,050, citing intensified competition and a decline in flow share.
- •The company reported a strong second-quarter operating profit before tax of Rs 9.1 billion, beating Nomura's estimates by 5% due to higher operating revenue and improved yields.
- •Quarterly average assets under management grew by 3.6% sequentially, led by a 5.8% growth in the equity segment.
- •Nomura lowered its earnings per share estimates by 3% for FY27 to FY29 to factor in lower AUM growth amid weakness in equity markets.
- •HDFC AMC added 0.6 million unique investors during the quarter, increasing its total share of unique investors by 40 basis points to 28%.
Key Questions Answered
Nomura maintains a 'Buy' rating on HDFC Asset Management Company (HDFC AMC) while lowering its target price to Rs 3,050 from Rs 3,130, which implies a 27% potential upside.
HDFC AMC reported an operating profit before tax of Rs 9.1 billion for Q2 FY27, which beat Nomura's estimates by 5%, driven by higher operating revenue, improved yields, and controlled costs.
Nomura reduced its target multiple for HDFC AMC due to intensified market competition and a decline in the company's flow share, resulting in lowered earnings per share estimates for FY27-FY29.
