HDFC Asset Management Company Limited

NSEI:HDFCAMC Stock Report

Market Cap: ₹893.7b

HDFC Asset Management Valuation

Is HDFCAMC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HDFCAMC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HDFCAMC (₹4190.15) is trading above our estimate of fair value (₹1589.88)

Significantly Below Fair Value: HDFCAMC is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HDFCAMC?

Key metric: As HDFCAMC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HDFCAMC. This is calculated by dividing HDFCAMC's market cap by their current earnings.
What is HDFCAMC's PE Ratio?
PE Ratio40.5x
Earnings₹22.09b
Market Cap₹893.71b

Price to Earnings Ratio vs Peers

How does HDFCAMC's PE Ratio compare to its peers?

The above table shows the PE ratio for HDFCAMC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average57x
NAM-INDIA Nippon Life India Asset Management
33x12.2%₹429.0b
360ONE 360 One Wam
44.7x14.6%₹406.4b
501301 Tata Investment
91.3xn/a₹336.8b
CDSL Central Depository Services (India)
59.1x14.7%₹314.5b
HDFCAMC HDFC Asset Management
40.5x14.3%₹893.7b

Price-To-Earnings vs Peers: HDFCAMC is good value based on its Price-To-Earnings Ratio (40.5x) compared to the peer average (57x).

Price to Earnings Ratio vs Industry

How does HDFCAMC's PE Ratio compare vs other companies in the IN Capital Markets Industry?

23 CompaniesPrice / EarningsEstimated GrowthMarket Cap
533095 Bengal & Assam
2.9xn/aUS$1.26b
VLSFINANCE VLS Finance
4.2xn/aUS$147.72m
536773 Jindal Poly Investment and Finance
2.6xn/aUS$117.07m
JINDALPHOT Jindal Photo
2.5xn/aUS$103.96m
HDFCAMC 40.5xIndustry Avg. 22.6xNo. of Companies40PE020406080100+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HDFCAMC is expensive based on its Price-To-Earnings Ratio (40.5x) compared to the Indian Capital Markets industry average (22.6x).

Price to Earnings Ratio vs Fair Ratio

What is HDFCAMC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HDFCAMC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.5x
Fair PE Ratio23.6x

Price-To-Earnings vs Fair Ratio: HDFCAMC is expensive based on its Price-To-Earnings Ratio (40.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HDFCAMC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹4,190.15
₹4,862.08
+16.0%
10.1%₹5,500.00₹3,600.00n/a24
Nov ’25₹4,322.85
₹4,862.08
+12.5%
10.1%₹5,500.00₹3,600.00n/a24
Oct ’25₹4,365.00
₹4,460.09
+2.2%
9.8%₹4,950.00₹3,125.00n/a23
Sep ’25₹4,420.50
₹4,430.09
+0.2%
10.3%₹4,950.00₹3,125.00n/a23
Aug ’25₹4,182.85
₹4,430.09
+5.9%
10.3%₹4,950.00₹3,125.00n/a23
Jul ’25₹4,109.70
₹3,919.62
-4.6%
12.9%₹4,910.00₹2,765.00n/a21
Jun ’25₹3,884.30
₹3,854.86
-0.8%
11.2%₹4,450.00₹2,765.00n/a21
May ’25₹3,894.65
₹3,811.57
-2.1%
12.1%₹4,450.00₹2,765.00n/a21
Apr ’25₹3,785.10
₹3,465.29
-8.4%
13.2%₹4,300.00₹2,350.00n/a21
Mar ’25₹3,784.75
₹3,460.52
-8.6%
13.1%₹4,300.00₹2,350.00n/a21
Feb ’25₹3,587.95
₹3,411.00
-4.9%
12.5%₹4,010.00₹2,350.00n/a21
Jan ’25₹3,221.30
₹2,868.86
-10.9%
8.6%₹3,230.00₹2,200.00n/a21
Dec ’24₹2,928.05
₹2,824.59
-3.5%
10.6%₹3,230.00₹2,050.00n/a22
Nov ’24₹2,723.10
₹2,779.36
+2.1%
11.2%₹3,230.00₹2,050.00₹4,322.8522
Oct ’24₹2,647.45
₹2,496.67
-5.7%
11.9%₹2,920.00₹1,700.00₹4,365.0021
Sep ’24₹2,431.25
₹2,497.05
+2.7%
11.9%₹2,920.00₹1,700.00₹4,420.5021
Aug ’24₹2,556.30
₹2,487.85
-2.7%
12.2%₹2,920.00₹1,700.00₹4,182.8520
Jul ’24₹2,295.65
₹2,017.53
-12.1%
9.4%₹2,350.00₹1,580.00₹4,109.7019
Jun ’24₹1,950.00
₹1,991.74
+2.1%
8.9%₹2,250.00₹1,580.00₹3,884.3019
May ’24₹1,764.30
₹1,997.39
+13.2%
7.3%₹2,250.00₹1,706.00₹3,894.6518
Apr ’24₹1,707.85
₹2,161.56
+26.6%
9.5%₹2,600.00₹1,800.00₹3,785.1018
Mar ’24₹1,809.35
₹2,321.65
+28.3%
12.3%₹3,195.00₹1,880.00₹3,784.7517
Feb ’24₹1,861.10
₹2,324.00
+24.9%
12.1%₹3,195.00₹1,920.00₹3,587.9517
Jan ’24₹2,181.50
₹2,302.06
+5.5%
12.5%₹3,195.00₹1,890.00₹3,221.3016
Dec ’23₹2,199.90
₹2,284.29
+3.8%
12.1%₹3,195.00₹1,890.00₹2,928.0517
Nov ’23₹2,090.25
₹2,282.39
+9.2%
11.7%₹3,195.00₹1,890.00₹2,723.1018

Analyst Forecast: Target price is less than 20% higher than the current share price.

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