HDFC Asset Management Company Ltd.
NSE: HDFCAMCHDFC Asset Management Company Ltd.: A 30-second snapshot
HDFC Asset Management Company (HDFCAMC), a leading domestic fund manager, trades at 2604.70 with a trailing PE of 39.1 and a forward PE of 29.7, reflecting a contraction in the earnings multiple expected over the next year. The business sustains a 61.83% net profit margin and an ROE of 32.93% — the highest among its 6 sector peers — but 5-year earnings CAGR of -2.8% indicates the high profitability has not compounded over the half-decade. A cybersecurity incident disclosed on 16 May 2026 dominates recent news flow and is the most material near-term development to monitor.
P/E
39.1
Forward P/E
29.7
ROE
+32.9%
Debt / Equity
—
Profit Margin
+61.8%
Div. Yield
+2.0%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
53/100
News
8 headlines · 1 positive · 5 negative
HDFC Asset Management Company Limited (NSE:HDFCAMC) Passed Our Checks, And It's About To Pay A ₹54.00 Dividend - simplywall.st
simplywall.st
HDFC AMC reports cyber security threat - BusinessLine
BusinessLine
HDFC AMC notifies cybersecurity incident on IT infrastructure, says unlikely to affect business - MediaNama
MediaNama
HDFC AMC drops after cyber-security incident disclosure - Business Standard
Business Standard
HDFC Asset Management Company Ltd reports cyber-security incident on May 16, 2026 - marketscreener.com
marketscreener.com
Recent context
- ·A cybersecurity incident was reported on HDFC AMC IT infrastructure on 16 May 2026; Business Standard reported the stock declined on the disclosure date, and subsequent coverage from MediaNama and BusinessLine noted management assessment that business operations were unlikely to be materially affected — regulatory and audit outcomes remain pending.
- ·HDFC AMC announced a dividend of 54.00 per share as recently reported by Simply Wall St (1 June 2026), consistent with the 2.02% trailing dividend yield; the payment was described as having passed standard dividend-health checks.
- ·The stock has pulled back 12.22% from its 52-week high as of the draft date, with the 3-month drawdown of -5.41% tracking closely to the timing of the cybersecurity disclosure in mid-May 2026.
Strengths
- +ROE of 32.93% is the highest of all 6 peers in the sector grouping (next highest: Bajaj Finance at 17.91%), reflecting the capital-light, fee-based AMC model that does not require large equity deployment to generate returns.
- +Net profit margin of 61.83% is characteristic of the asset-management business structure, where incremental AUM growth carries minimal marginal cost — a structural advantage relative to lending peers where credit costs directly erode margins.
- +FCF was positive in 4 of the available years and ROE remained above 15% in 4 of the tracked years, with a consistency score of 88 — indicating earnings quality has been broadly stable even as the growth rate softened.
- +Forward PE of 29.7 is 24% below the trailing PE of 39.1, implying the analyst community that covers the stock (28 analysts) is pricing in a meaningful earnings recovery in the coming year versus the trailing period.
Weaknesses
- −5-year earnings CAGR of -2.8% against revenue CAGR of +3.7% is the primary structural concern: the business grew revenues but profits shrank on a per-year compounded basis, pointing to cost growth or fee-rate compression that offset topline gains.
- −The cybersecurity incident of 16 May 2026 is a HIGH-severity risk for a data-custodian business: 5 of 8 recent news articles are negative, and the reputational and regulatory dimensions of an IT breach at an AMC are not fully bounded by management statements alone.
- −Price is below both the 50-DMA (2623.41) and 200-DMA (2685.85) with a 3-month return of -5.41%, placing the stock in a near-term downtrend phase with the first resistance cluster (2696–2810) representing a 3.5–7.9% gap above current levels.
- −Composite quality score of 40 ranks 4th of 6 in the sector grouping, pulled down by the negative earnings-growth persistence that offsets the strong ROE — the two metrics together suggest the business earns well on existing capital but has not grown that earnings base meaningfully over 5 years.
Open questions
- ?Does the 5-year earnings CAGR of -2.8% reflect a structural compression in AMC fee rates across the industry, or is it specific to HDFCAMC losing market-share in higher-margin active funds to passive and low-cost alternatives?
- ?How material is the cybersecurity incident in terms of regulatory scrutiny — has SEBI or any other body initiated a formal inquiry, and what are the disclosure obligations and potential penalties for an AMC in such a scenario?
- ?The forward PE of 29.7 implies a substantial earnings step-up versus the trailing period — what specific business drivers (AUM growth, equity-mix shift, cost controls) are expected to produce that acceleration, and how sensitive is the multiple to a miss?
- ?Given that HDFCAMC is classified alongside banking and lending peers for sector comparison, how does its PE of 39.1 compare when benchmarked against pure-play listed AMC peers domestically or globally, where the structural economics are more directly analogous?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HDFCAMC | HDFC Asset Management Company Ltd.You're viewing | 39.1 | +32.9% | 40 |
| Industry avg | across 5 peers | 31.2 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.6 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.8 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 66.2 | +11.3% | 20 |
Technical state
Current price
₹2,604.70
SMA 50
₹2,623.41
SMA 200
₹2,685.85
RSI (14)
41.3 (neutral)
From 52w high
-12.2%
1Y return
+9.9%
3M return
-5.4%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highA cybersecurity incident was disclosed on HDFC AMC IT infrastructure on 16 May 2026. Five of the 8 tracked news articles reference the event, driving overall news sentiment to negative (5 negative, 2 neutral, 1 positive). For an asset-management company whose core asset is client data and trust, a breach or sustained IT compromise carries material reputational and regulatory exposure. Management stated the incident is unlikely to affect business operations, but full scope and containment status remained unconfirmed across multiple sources as of the draft date.
- medium5-year earnings CAGR is -2.8% against 5-year revenue CAGR of +3.7%, indicating that cost growth or fee compression has outpaced revenue over the period. The 61.83% profit margin remains high in absolute terms, but the directional trend shows margin erosion even in a growing-revenue environment.
- mediumPrice of 2604.70 sits below both the 50-DMA (2623.41) and 200-DMA (2685.85). The 3-month return is -5.41% and the stock is 12.22% below its 52-week high. First resistance cluster (2696–2809) is 3.5–7.9% above current price with no intermediate support breakout to anchor a recovery narrative.
- lowDebt-to-equity data is null, preventing direct leverage assessment. Quality score of 40 ranks 4th of 6 among sector peers, weighed down by the negative earnings-growth persistence despite strong ROE.
- lowHDFCAMC is classified alongside banking and lending peers (HDFC Bank, Axis Bank, Bajaj Finance). At trailing PE 39.1, it is the second-most expensive of 6 peers after HDFCLIFE (PE 66.2). Cross-sector PE comparisons are structurally limited because AMC economics (fee-based, capital-light) differ fundamentally from lending-book businesses.
Cross-section contradictions
- ROE of 32.93% is the highest among all 6 sector peers yet 5-year earnings CAGR is -2.8% — high return on equity coexists with a declining earnings trajectory, suggesting the ROE base has not translated into compounding profit growth over the measured period.
- 1-year price return of +9.94% is positive, yet the 3-month return is -5.41% and price now sits below both the 50-DMA and 200-DMA — recent momentum has reversed the longer-term trend, with the cybersecurity disclosure in mid-May coinciding with the drawdown from the 52-week high.
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.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days