Source: Moneycontrol
Monday, 21 April 2025 | Mumbai – Shares of Asset Management Companies (AMCs) surged on the BSE today with gains of up to 9% as HDFC Asset Management Company (HDFC AMC) reported strong Q4FY25 earnings. The strong result helped spur investor optimism for the whole sector. Top Gainers on the BSE Several AMC stocks recorded notable gains as of 1:44 PM:
- HDFC AMC: Rose 7% to ₹4,497.90 on BSE today
- Nippon Life India AMC (NAM India): Surged 9% to ₹647.65
- Shriram Asset Management: Gained 8% to ₹470
- Aditya Birla Sun Life AMC: Increased 6% to ₹661.60
- UTI AMC: Climbed 6% to ₹1,085
In comparison, the BSE Sensex was up 1%, reaching 79,372.
HDFC AMC’s Q4FY25 Highlights
HDFC Mutual Fund’s investment manager, HDFC AMC, said:
- Asset Under Management (AUM): ₹7.55 trillion (March 31, 2025)
- AUMs: In FY25, market share by MS improved from 11.4% to 11.5% from FY24
- Consumer Base: 13.2 million distinct shareholders, or 24% of India’s 54 million mutual fund customers, up from 22% in FY 2020
The company provides them with active and passive mutual funds across all categories, portfolio management services and alternative investment products.
Analyst Commentary and Outlook
ICICI Securities Despite the current market volatility, net flows in the mutual fund industry are healthy indicating decent resilience from retail investors so far “While HDFC AMC stock could be prone to market volatility, current valuations offer favorable risk-reward from a medium term perspective,” analysts at ICICI Securities said. The brokerage firm recommends ‘buy’ call on the stock as it has a target price of ₹5,100.
HDFC AMC Rationale:
- Commended HDFC AMC’s ability to maintain market share despite intense competition.
- Cited strong operational fundamentals, wide distribution network, and synergies with HDFC Bank as key growth drivers.
- Emphasized the underpenetrated nature of India’s asset management space as a long-term opportunity.
Motilal Oswal Financial Services, remains a strong player in mutual fund space with strong financial performance, steady AUM growth, operating leverage, and low-cost structure and strong retail presence, (Motilal Oswal Financial Services)
“While short-term market fluctuations pose challenges, the company’s long-term fundamentals remain solid,” the brokerage said in its Q4FY25 result update report. With an improved market position, a well-diversified product portfolio, and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders. The brokerage firm added Feels short-term market volatility could continue, but believes the company’s long-term fundamentals remain strong.
