HDFC Asset Management Company Limited

Financial Services — Asset Management · NSE

₹2,398.60−₹16.40 (−0.68%)

DalalBaazaar Score

80 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of HDFC Asset Management Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

HDFC Asset Management Company Limited is a publicly owned investment manager. The firm launches and manages equity, fixed income, and balanced mutual funds for its clients. It manages equity, fixed income, balanced, and real estate portfolios.

IndustryAsset Management

SectorFinancial Services

Employees1,713

Annual revenue₹4,122 Cr

How does it make money?

Turns over ₹4,122 Cr a year. Of every ₹100 of sales, about ₹69 reaches shareholders as profit, with ₹81 left at the operating level before interest, tax and depreciation. Each of its 1,713 employees supports ₹2.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.41 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

17 analysts covering the stock expect revenue to grow about 16.2% and earnings to grow about 14.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.2%

Est. earnings growth+14.9%

Analysts17

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +90% while net margin moved +6% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+90%

Margin effect+6%

DalalBaazaar Score

80/ 100

Strong

Weighted across six categories. Every point is explained below.

• P/E of 34.6x already prices in growth
✓ P/E is 26% below its own historical median of 46.9x — cheap by its own standards
✗ P/B of 11.94x is a steep premium to book
✓ Dividend yield of 2.25% pays you to wait

Quality vs. Valuation

Company Quality

84/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

53/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.6x

3Y Median

46.9x

40 monthly readings · mean 47.4x · range 34.3x–62.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 26% below its 3y median of 46.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 104% above the peer median of 17.0x.

vs. its own history

Cheap

46.9x median over 40 months · -26%

vs. sector peers

Expensive

17.0x median of 4 peers · +104%

vs. generic bands

Fair

15x–35x

EV/EBITDA

30.8x

PEG

1.32

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 76.2% to 81.1% over 3 years.
Return on equity is rising
ROE has improved from 23.3% to 31.0%.
Return on capital is rising
ROCE has improved from 29.8% to 38.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 76.2% to 81.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 26% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 104% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 18% a year✓ 23.9% CAGR
Latest reported year was 10.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 79%✓ 81.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 34%✓ 36.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 46.9x✓ 34.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹1.03 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

34.6x

Fair

Fairly valued against the generic band

P/B Ratio

11.94x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹69.24

Profitable

Profitable on a per-share basis

ROE

36.4%

Strong

Strong capital efficiency

ROCE

38.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

10.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4.2%

Modest

Slow profit growth

Dividend Yield

2.25%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹2,538 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

27.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

27.5%

Good

Assets are working hard

Operating Margin

79.0%

Good

Healthy core-business profitability

Net Margin

60.8%

Good

Strong bottom-line conversion

Current Ratio

1.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2343.3 / 2449.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,167 Cr	₹2,584 Cr	₹3,498 Cr	₹4,122 Cr	+23.9%
EBITDA	₹1,652 Cr	₹1,989 Cr	₹2,822 Cr	₹3,342 Cr	+26.5%
EBITDA Margin	76.2%	77.0%	80.7%	81.1%	—
PAT (Net Profit)	₹1,423 Cr	₹1,943 Cr	₹2,460 Cr	₹2,858 Cr	+26.2%
EPS	₹33.36	₹45.45	₹57.38	₹66.5	+25.9%
ROE	23.3%	27.5%	30.3%	31.0%	—
ROCE	29.8%	34.1%	38.9%	38.5%	—
Free Cash Flow	₹1,135 Cr	₹1,596 Cr	₹2,030 Cr	₹2,505 Cr	+30.2%

🟢 Revenue has grown at 23.9% a year over 3 years.

🟢 EBITDA has grown at 26.5% a year over 3 years.

🟢 EBITDA Margin has risen from 76.2% to 81.1% over 3 years (+4.8 pts).

🟢 PAT (Net Profit) has grown at 26.2% a year over 3 years.

🟢 EPS has grown at 25.9% a year over 3 years.

🟢 ROE has risen from 23.3% to 31.0% over 3 years (+7.7 pts).

🟢 ROCE has risen from 29.8% to 38.5% over 3 years (+8.7 pts).

🟢 Free Cash Flow has grown at 30.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,991 Cr

Total Liabilities

₹763 Cr

Total Debt

—

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹2,528 Cr

Capex

-₹23 Cr

Shareholding (proxy)

Institutional Holding

27.4%

Insider Holding

56.6%

Corporate Actions

Next Earnings

14 Jan 2027

Dividend Rate

₹54

Ex-Dividend Date

05 Jun 2026

Analyst Consensus

Recommendations

25 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹2,985.7

+24.5% vs CMP

Target Range

₹2,610 – ₹3,245

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive2 mixed1 negative2 general

HDFC Asset Management Company Limited Just Missed Earnings - But Analysts Have Updated Their Models

Simply Wall Street, 18 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buy HDFC Asset Management Company; target of Rs 2850: Prabhudas Lilladher

Moneycontrol.com, 16 Oct

HDFC Asset Management Co Ltd (NSE:HDFCAMC) (Q2 2027) Earnings Call Highlights: Revenue Climbs ...

Yahoo Finance, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Earnings call transcript: HDFC AMC Q2 2026 revenue rises as SIP flows hit record

Investing.com India, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Is HDFC Asset Management Company the Best Stock in Its Sector? A Look at the Numbers

Univest, 13 Oct

HDFC AMC Q2 Results: Net Profit Falls 10.5%, Total Income Dips 9%

NDTV Profit, 15 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 4 tripwires holding · see Key things to watch ↑