HDFC Asset Management Company Limited (NSE:HDFCAMC) Just Beat EPS By 11%: Here's What Analysts Are Forecasting For Next Year

HDFC Asset Management Company Limited (NSE:HDFCAMC) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. HDFC Asset Management delivered a significant beat with revenue hitting ₹8.1b and statutory EPS reaching ₹22.82, both beating estimates by more than 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for HDFC Asset Management

After the latest results, the 14 analysts covering HDFC Asset Management are now predicting revenues of ₹34.8b in 2025. If met, this would reflect a solid 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 16% to ₹96.94. Before this earnings report, the analysts had been forecasting revenues of ₹33.0b and earnings per share (EPS) of ₹92.00 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for HDFC Asset Management 13% to ₹3,322on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic HDFC Asset Management analyst has a price target of ₹4,010 per share, while the most pessimistic values it at ₹2,350. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting HDFC Asset Management's growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that HDFC Asset Management is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HDFC Asset Management's earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple HDFC Asset Management analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that HDFC Asset Management is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.