Motilal Oswal has issued a buy rating on HDFC AMC with a target price of ₹3,200, as reported in their research report dated September 8, 2026. The brokerage's recommendation is based on the company's strong fundamentals and growth prospects in the mutual fund industry. According to the report, the target price is premised on 44x FY28E Core EPS valuation. The recommendation was made after attending the analyst meet hosted by HDFC AMC management on September 8, 2026, where discussions focused on structural growth opportunities in mutual funds and the company's multiple growth levers.
The research report projects robust financial performance for HDFC AMC over the next three years. AUM is expected to grow in mid-teens, while revenue, EBITDA, and PAT should record FY26-28 CAGR of 13%, 14%, and 14% respectively. These projections reflect the company's strong positioning in the expanding mutual fund market and its ability to drive flows beyond market-led AUM growth through multiple strategic initiatives.
According to the analyst meet hosted by HDFC AMC management on September 8, 2026, the company is well-positioned to capitalize on structural industry tailwinds. Considering approximately 62.5 million MF investors versus 120-130 million active NSE investors, deeper penetration of the existing investor base remains a significant opportunity. The report highlights increasing financialization, growing participation from B30 cities, and an expanding public-market universe as key growth drivers. Structural industry tailwinds remain intact, supported by these favorable demographic and market trends.
HDFC AMC has identified multiple levers to drive flows beyond market-led AUM growth. Strong long-term fund performance with 13 funds having over 15 years of track record provides a competitive advantage. The company is focusing on under-penetrated products, SIP top-ups, higher ticket sizes, and increasing products per customer to support wallet-share gains. Distribution remains a key competitive advantage with continued investments in phygital, banks, MFDs and fintech platforms. While the AMC is strengthening its HDFC Bank relationship, it aims to maximize its presence across all distribution channels to capture all possible growth trends in the evolving financial services landscape.
The company is strengthening its HDFC Bank relationship while aiming to maximize its presence across all distribution channels to capture growth trends. As reported in the research, HDFC AMC is focusing on maximizing its presence across all distribution channels to capture all possible growth trends in the evolving financial services landscape. This multi-channel approach is designed to capture various growth opportunities in the evolving financial services landscape, leveraging the company's strong distribution network and strategic partnerships.
