HDFC Asset Management Company Ltd.
Banking · NSE
52-week range
₹2,049 – ₹2,967
From 52w high
-3.8%
RSI (14)
64.9
vs SMA 50 / 200
↑ 50 · ↑ 200
HDFC Asset Management Company (HDFCAMC) is India’s second-largest mutual fund manager by AUM, trading at Rs 2,854 as of May 2026, up 34% over the prior 12 months and currently above both its 50-DMA (Rs 2,579) and 200-DMA (Rs 2,695). The trailing PE of 42.8 compresses to a forward PE of 32.4, while ROE of 32.9% and a 61.8% profit margin reflect the capital-light nature of the fee-based AMC model. Five-year earnings growth is -2.8% despite positive revenue growth, with Q4 FY26 net profit down 2.47% YoY.
- ✓ROE of 32.9% ranks 1st among the 6 Banking-sector peers listed (next highest: Bajaj Finance at 17.9%), sustained across 4 of the last available years above the 15% threshold.
- ✓Profit margin of 61.8% reflects the fee-income structure of an asset-management business, where incremental AUM growth does not require proportional capital deployment.
- ✓FCF positive in 4 of the last available years, with a persistence consistency score of 88 out of 100 — indicating low earnings volatility relative to peers.
- ✓Price up 34% over 12 months, trading 10.6% above the 200-DMA (Rs 2,695) and only 3.8% below the 52-week high, with RSI at 64.9 (neutral zone, below overbought threshold of 70).
- ✗5-year earnings CAGR of -2.8% against 3.7% revenue CAGR indicates that profit margins have compressed over the medium term, with Q4 FY26 consolidated net profit declining 2.47% YoY to Rs 623 crore.
- ✗Quality composite score of 37 ranks 4th of 6 sector peers, trailing banks (Axis Bank 50, HDFC Bank 47) and Bajaj Finance (51) on the composite metric — suggesting non-ROE quality dimensions are weaker.
- ✗Trailing PE of 42.8 is the highest among non-insurance Banking-sector peers (Bajaj Finance 31.3, Bajaj Finserv 30.3, HDFC Bank 17.4, Axis Bank 15.0), representing a significant valuation premium that leaves limited room for multiple expansion if earnings growth does not accelerate.
- ✗Debt-to-equity data is unavailable, preventing balance-sheet leverage assessment; the null value limits full due-diligence on capital structure.
- ·Q4 FY26 results (April 2026): consolidated net profit of Rs 623 crore, down 2.47% YoY, while the company declared a final dividend of Rs 54 per share — the dividend and the profit decline appeared in the same reporting event, generating both positive and negative coverage simultaneously.
- ·Full-year FY26 profit reported as up 16% by Dalal Street Investment Journal, contrasting with the Q4 quarterly decline — the divergence reflects the difference between full-year cumulative performance and the most recent quarter’s result.
- ·Analyst coverage spans 26 analysts with a mean rating of 1.46 on a 1–5 scale (lower = more constructive); one nearest resistance level sits at Rs 2,901.5, approximately 1.7% above the current price of Rs 2,854.
- ?Does the 5-year earnings CAGR of -2.8% reflect structural margin pressure from fee-rate compression industry-wide, or is it specific to HDFCAMC’s cost base and product mix?
- ?How much of the 34% 12-month price appreciation is attributable to AUM growth (equity market rally effect on fee income) versus operational improvements, and what happens to earnings if equity markets correct materially?
- ?Given the forward PE of 32.4 versus the trailing PE of 42.8, what earnings growth rate is implied, and is the historical 5-year track record consistent with that implied growth?
- ?How does HDFCAMC’s market-share trajectory within the Indian MF industry compare to peers such as SBI MF and ICICI Prudential AMC, and does market-share trend predict future fee-income growth independent of overall AUM growth?
PE
42.8
Forward PE
32.4
ROE
+32.9%
Profit margin
+61.8%
D/E
—
Dividend yield
+1.6%
Quality score
37/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.