HDFC AMC Shares Surge After Strong Q2FY25 Financial Results

Stocks in News | Shares of HDFC Asset Management Company (HDFC AMC), India’s second-largest asset management company, surged by 6% on October 16, following robust Q2 FY25 results, pushing its market capitalization beyond Rs 1 lakh crore for the first time. 

This upmove positioned it as the top performer in the Nifty Midcap 100 and was a key driver of the Nifty Financial Services sectoral index's rise on the same day.

Record Growth in Profits and Revenue

During the second quarter of FY25, HDFC AMC reported a substantial 32% year-on-year growth in its profit after tax (PAT), reaching Rs 576.61 crore. This marked a notable increase from Rs 436.52 crore recorded in the same quarter the previous year. 

The company's revenue also saw a remarkable rise, climbing 38% to Rs 887.2 crore compared to Rs 643 crore in the corresponding period last year. Similarly, total income escalated by 38%, reaching Rs 1,058.19 crore in the July-September quarter, up from Rs 765.35 crore year-on-year.

For the first half of FY25, HDFC AMC reported a net profit of Rs 1,180.37 crore with a total income of Rs 2,007 crore.

Expanding Assets Under Management

HDFC AMC's assets under management (AUM) grew by 7.5% to Rs 7.58 lakh crore, with significant gains in the debt and liquid market shares. The company maintained a stable equity market share at 12.9%, while its debt market share increased to 13.5% and its liquid market share to 12.1%. 

Notably, high-margin equity assets constitute 66% of HDFC's total AUM, outperforming the industry average of 57% in equity assets as of September 2024.

Brokerage Outlook for HDFC AMC

HDFC AMC’s performance garnered attention from various brokerages, leading to mixed ratings and target prices:

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