HDFC Asset Management Company Limited (NSE:HDFCAMC) Just Released Its Annual Earnings: Here's What Analysts Think

HDFC Asset Management Company Limited (NSE:HDFCAMC) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. HDFC Asset Management reported ₹32b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹90.89 beat expectations, being 3.3% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for HDFC Asset Management

Following the latest results, HDFC Asset Management's twelve analysts are now forecasting revenues of ₹36.7b in 2025. This would be a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 12% to ₹102. Before this earnings report, the analysts had been forecasting revenues of ₹36.4b and earnings per share (EPS) of ₹98.95 in 2025. So the consensus seems to have become somewhat more optimistic on HDFC Asset Management's earnings potential following these results.

There's been no major changes to the consensus price target of ₹3,671, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values HDFC Asset Management at ₹4,450 per share, while the most bearish prices it at ₹2,765. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹3,671, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for HDFC Asset Management going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for HDFC Asset Management that you should be aware of.

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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.