21 Apr , 2025 By : Debdeep Gupta
Shares of HDFC Asset Management Company Ltd (HDFC AMC) rose 4 percent on April 21 after the mutual fund company reported 18% jump in net profit in March quarter.
At 10:25 am on April 21, HDFC AMC's shares on BSE were trading 4% higher at Rs 4,386 apiece.
The firm's standalone net profit rose by 18 percent year-on-year (YoY) to Rs 638 crore in the fourth quarter of FY25, as compared to Rs 541 crore in the same quarter of the previous financial year.
The company’s revenue also saw a strong increase, rising 30 percent YoY to Rs 901 crore in Q4FY25, up from Rs 695 crore in Q4FY24. However, the company’s other income declined by 21 percent YoY to Rs 123 crore in Q3FY25.
In addition to this, the company’s total expenses increased by 11 percent YoY to Rs 189.6 crore in the quarter ended March, compared to Rs 171 crore in the corresponding quarter last year.
Motilal Oswal gave a target price of Rs 5,000 for the stock, which indicates 13.5 percent upside from the current levels.
"Despite weak market sentiment, industry-level gross SIP flows declined just 2% QoQ in Mar’25 but rose 25% YoY. Management remains optimistic about a pickup in flow trends, noting that the company’s decline in SIP flows was lower than the industry average," said the brokerage firm.
HDFC AMC is engaged in the business of providing asset management services to HDFC Mutual Fund, as well as alternative investment funds. It also offers portfolio management and advisory services to clients.
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