The stock opened at Rs. 2,722.30 on the National Stock Exchange (NSE), compared to its previous close of Rs. 2,729.30.
Selling pressure intensified during the session, dragging the share price to an intraday low of Rs. 2,587.60, down about 5 percent.
Among domestic brokerages, Kotak Securities downgraded the stock from 'Buy' to 'Add', while raising its target price to Rs. 3,000 from Rs. 2,950. The brokerage cited limited upside from current levels despite the company's strong operational performance.
Global brokerage Morgan Stanley maintained its 'Overweight' rating on the stock with a target price of Rs. 3,065, noting that HDFC AMC's first-quarter net profit exceeded market expectations.
Meanwhile, Bernstein reiterated its 'Outperform' rating and set a target price of Rs. 3,030, expressing confidence in the company's long-term growth prospects.
HDFC AMC reported a 12 percent year-on-year rise in net profit to Rs. 837.13 crore for the quarter ended June 2026, driven by robust equity inflows and higher assets under management (AUM). Revenue from operations rose around 14 percent year-on-year to Rs. 1,098 crore, reflecting continued strength in the mutual fund business.
Despite the strong financial performance, analysts believe elevated valuations and limited near-term upside prompted profit booking, weighing on the stock during Thursday's trading session.
Key Financial Highlights
- Net Profit (PAT): ₹837.13 crore, up 12% YoY from ₹747.55 crore.
- Revenue from Operations: ₹1,098 crore, up around 14% YoY.
- Profit Before Tax (PBT): ₹1,090 crore, an increase from ₹986 crore in the corresponding quarter last year.
- EBITDA: ₹851 crore, up about 10% YoY, while EBITDA margin stood at 77.4%.
- Quarterly Average Assets Under Management (QAAUM): ₹9.35 lakh crore, up from ₹8.29 lakh crore a year ago.
- Mutual fund industry market share (QAAUM): 11.2%.
- Closing AUM: Approximately ₹9.32 lakh crore as of June 30, 2026.