HDFC Asset Management stock: Nomura keeps Buy amid estimate cuts

Nomura kept its Buy rating on HDFC Asset Management while lowering its target price, according to a Moneycontrol report published on October 19, 2026. The analysis followed the company's second-quarter results for the period ended September 30.

Strong operating performance

HDFC Asset Management reported operating profit before tax of INR 9.1 billion for the quarter, an increase of 16% year over year and 10% sequentially. The result exceeded Nomura's estimate by 5%, helped by higher operating revenue and improved revenue yields.

Quarterly average assets under management rose 10% year over year and 3.6% sequentially. Equity assets led the increase, growing 5.8% from the previous quarter. Moneycontrol reported that net profit after tax also beat Nomura's estimate by 6%.

Competition weighs on valuation

Nomura reduced its target price to INR 3,050 from INR 3,130. The brokerage cited intensifying competition and a decline in HDFC Asset Management's share of flows, while also lowering its earnings-per-share estimates for fiscal years 2027 through 2029.

The report said the company added 0.6 million unique investors during the quarter, compared with 1.4 million for the industry. Its share of unique investors increased to 28%, but its share of systematic transaction flows moderated to 14.8% from 15.1% in the first quarter, mainly because of weaker systematic transfer-plan activity.

Investor perspective

The combination of strong operating execution and pressure on flow share leaves investors balancing current profitability against the durability of future asset growth. Nomura expects revenue yields to normalise after two consecutive quarters of expansion, making net inflows, product competitiveness and cost discipline important areas to monitor.