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🏦 HDFC AMC – AUM Powerhouse with Profit Precision

Lesson 34/224 | Study Time: 10 Min

Course: Top Quality Companies

🏦 HDFC AMC – AUM Powerhouse with Profit Precision

FY25 Results, Industry Leadership & Long-Term Investment Thesis

📘 About HDFC AMC

HDFC Asset Management Company Ltd (HDFC AMC), incorporated in 1999, is one of India’s largest and most trusted mutual fund houses. It’s the investment manager to HDFC Mutual Fund and provides a comprehensive suite of investment products across equities, debt, liquid, hybrid, PMS, AIFs, and offshore funds.

Post its IPO in 2018–19, HDFC AMC has continued to show operational resilience, high profitability, and leadership in individual investor-focused AUM.

🌏 Industry Overview & Growth Potential

India’s Asset Management Industry is experiencing structural tailwinds:

Financialization of savings
Digital adoption across Tier II & Tier III cities
SIP penetration & investor awareness

The mutual fund AUM has grown at a 20%+ CAGR over the last decade, with individual investors contributing ~60%. HDFC AMC maintains a strong 13.2% share in the individual investor segment.

Industry Dashboard:

https://docs.google.com/spreadsheets/d/e/2PACX-1vTYjekcWKM1oWSuu-JeXLi3O6JghVomtlZV9ahR1yswQ-nLAJB3VrlLpreYj09PjA/pubhtml?gid=784956182&single=true

📊 FY25 Performance Snapshot

Metric	FY25	FY24	Growth
AUM (₹ Cr)	7,74,000	6,12,900	26%
Revenue (₹ Cr)	3,498	2,584	35%
Profit (₹ Cr)	2,458	1,941	27%
EPS (₹)	115.2	91	27%
Operating Margin	70%	75%	-5%
Dividend (₹/share)	90	70	28%

📈 Historical Growth Trajectory

Year	AUM (₹ Cr)	Revenue	Profit	Margin
FY2025	774,000	3,498	2,457	70%
FY2020	319,100	2,003	1,262	63%
FY2015	150,569	1,064	416	39%

10-Year CAGR:

AUM: 18%
Revenue: 13%
Profit: 19%
EPS: ~14%

🔎 Valuations at CMP ₹4,216

Metric	Value
EPS (FY25)	₹115.2
FY26 Est. EPS	₹149.7
P/E (TTM)	36x
Forward P/E	~28x
PEG Ratio	0.9
Dividend Yield	~2.13%
Fair Value (FY26)	₹4,491
Long-term FV 2030	₹7,294
Long-term FV 2035	₹12,855

📉 Buy Zone: ₹3,200
🎯 Target: ₹6,800 (2-Year Profit Booking)

(As per TradingView technical chart)

🧭 Peer Comparison – Domestic & Global

🔹 India Listed Players:

Company	AUM (₹ Cr)	Margin	P/E
HDFC AMC	774,000	70%	36x
Nippon AMC	409,000	47%	26x
UTI AMC	294,000	32%	19x
Aditya Birla	302,000	38%	25x

🔹 Global Benchmarks:

Company	AUM ($ Bn)	Margin	P/E
BlackRock (USA)	10,000+	40%	21x
T. Rowe Price	1,400	43%	16x
Franklin Templeton	1,500	34%	15x

✅ HDFC AMC stands out for highest margin globally, despite smaller AUM.

📅 Forward Outlook

Metric	FY26 Est.	Long Term CAGR
AUM (₹ Cr)	959,760	15%
Revenue (₹ Cr)	4,547	15%
Profit (₹ Cr)	3,183	15%
EPS (₹)	150	15%
Margin	70%	65–70%

FairValue: HDFC AMC:

https://docs.google.com/spreadsheets/d/e/2PACX-1vTYjekcWKM1oWSuu-JeXLi3O6JghVomtlZV9ahR1yswQ-nLAJB3VrlLpreYj09PjA/pubhtml?gid=914618459&single=true

🔍 Technical & Sentiment View

📉 BUY ZONE: ₹3,200
📈 TARGET: ₹6,800 over 2 years
💰 Supportive Dividend Yield + SIP flows + rising retail = Low risk, steady reward

✅ Disclosure

This blog is for educational and informational purposes only and not investment advice. Investors must do their own research or consult a financial advisor before investing. The author may hold a position in HDFC AMC.

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Piyush Patel

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