HDFC AMC shares rally 4%; MOFSL says valuations reasonable, sees 20% upside Shares of HDFC Asset Management Company surged 4% in trading today, ending a three-day losing streak. The stock opened with a 2% gain at ₹2,300 and reached an intraday high of ₹2,355 before trading near ₹2,343. Motilal Oswal Financial Services reiterated its 'Buy' rating on the stock, citing reasonable valuations and the company’s leadership position in the mutual fund industry. The brokerage set a target price of ₹2,700, implying an upside of nearly 20% from the previous close of ₹2,254.60. Motilal Oswal highlighted strong systematic investment plan (SIP) inflows, which have driven the stock’s performance. The company’s SIP assets under management (AUM) rose 24% year-on-year to ₹2.2 trillion, with retail investors accounting for 69% of total monthly average AUM (MAAUM), compared to the industry average of 60.1%. The firm also noted a growing investor base of 15.4 million unique investors and 27.7 million live accounts as of December 2025. The brokerage emphasized HDFC AMC’s resilient margins, which remain among the highest in the industry at 33 to 36 bps. These margins are supported by operating leverage and disciplined cost management. Motilal Oswal also projected a 17% compound annual growth rate (CAGR) in AUM for the company, with revenue, EBITDA, and profit expected to grow at 15% annually over FY26–28. The firm praised HDFC AMC’s consistent fund performance across different time horizons, which has bolstered distributor confidence and sustained retail inflows. Despite short-term market fluctuations, Motilal Oswal noted that the company’s long-term fundamentals remain strong.#motilal_oswal #nifty_index #hdfc_amc #systematic_investment_plan #mutual_fund_industry
