HDFC AMC (HDFCAMC IN): Hold: Margin expansion not structural

研报英文原文证据摘录

HDFC AMC (HDFCAMC IN): Hold: Margin expansion not structural

The company also gained share in unique investors ROE 32.9 33.8 35.7 37.4

and improved its direct sales mix. At 35.8x FY28e core EPS (c2x PEG), valuation

52-WEEK PRICE (INR)

appears to fairly reflect earnings potential. We retain a Hold rating with a revised TP of

INR2,590.00 (from INR2,610.00). A re-rating likely requires a return to sustained AUM 3100.00

market share gains. 2600.00

We tweak FY27-29e EPS estimates: Our lowered AUM estimates factor in lower growth 2100.00

07/25 01/26 07/26

in debt and liquid funds. Additionally, we change yield and operating cost assumptions Target price: 2590.00

which leads to 0.8-1.4% cut in core PAT over FY27-29e. However, we increase our High: 2946.00 Low: 2216.40 Current: 2729.20

treasury income estimates, leading to 0.1-0.6% change in EPS over FY27-29e. Source: LSEG IBES, HSBC estimates

Overall, we estimate FY26-29e CAGRs of c19% in AUM and c17% in profit.

Rahil Shah*

Key observations from 1QFY27 results: Analyst, India Financials

HSBC Securities and Capital Markets (India) Private Limited

◆ The company lost 20bp q-o-q market share in active equity QAAUM. It gained rahil.shah@hsbc.co.in

+91 22 6628 3719

market share in unique customers (+43bp q-o-q).

Abhishek Murarka*

◆ Income yield improved by c2bp q-o-q but it was offset by faster expense growth, Senior Analyst, India Financials

leaving operating margin flat q-o-q. HSBC Securities and Capital Markets (India) Private Limited

abhishek.murarka@hsbc.co.in

Highlights from management commentary: Management aims to maintain an +91 73049 07567

operating margin between 33-35bp of AUM (currently 35bp). While it remains prudent Gaurav Sharma*

Analyst, India Financials