Motilal Oswal has issued a buy rating on HDFC AMC with a target price of ₹2,700 in its research report dated March 23, 2026. According to reports from Moneycontrol, the brokerage expects a CAGR of 17%/14%/15%/15% in AUM/revenue/EBITDA/PAT over FY26-28E. The recommendation comes as HDFC AMC has corrected sharply by ~17% over the past month, compared to a 12-15% decline in listed peers, bringing valuations to more reasonable levels despite strong systematic inflows and consistent fund performance.
HDFC AMC maintains its position as one of the top three mutual fund houses with a QAAUM of ₹9.2 trillion and overall/active equity market share of 11.4%/13% as of December 2025. As reported by Moneycontrol, fund performance remains a key differentiator with >69% of its AUM consistently staying in the top two quartiles on a 1-year basis since April 2025 (~79% in February 2026) and >70% on a 3-year basis since January 2023 (~82% in February 2026). The company retains cost leadership with a cost-to-income ratio of ~19% (versus peers at ~25-54%), translating into the best-in-class profitability with a PAT-to-AAUM ratio of ~33bp.
The retail franchise remains robust with SIP AUM of ₹2.2 trillion (+25% YoY; ~39% of active equity AUM) and ~15.8% SIP market share. According to Moneycontrol reports, the company maintains ~26% share of unique MF investors, reflecting deep retail penetration and sticky flows. The company's cost leadership translates into strong cash generation and RoE of >30%, supporting the brokerage's positive outlook on the stock's potential.
Within HDFC Bank, HDFC AMC has a share of ~28% while for SBI, SBI MF accounts for 98% for SBI. For ICICI Bank, IPRU MF accounts for 69% and for Axis Bank, Axis MF accounts for 35%. As reported by Moneycontrol, this indicates significant untapped potential for deeper penetration through HDFC Bank's branch network, suggesting substantial growth opportunities in the distribution channel.
The brokerage maintains its buy rating with a one-year target price of ₹2,700, representing a 36x FY28E core EPS valuation. According to Moneycontrol, the recommendation is based on the company's strong fundamentals, consistent performance, and reasonable valuations following the recent correction. The target price reflects confidence in HDFC AMC's ability to maintain its market position and deliver consistent returns to investors.
