HDFC Asset Management Company Limited Just Missed Earnings - But Analysts Have Updated Their Models
Investors in HDFC Asset Management Company Limited (NSE:HDFCAMC) had a good week, as its shares rose 6.0% to close at ₹2,399 following the release of its quarterly results. Results were mixed, with revenues of ₹12b exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were ₹17.40 per share, -46% short of analyst expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from HDFC Asset Management's 17 analysts is for revenues of ₹52.7b in 2027. This reflects a satisfactory 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.4% to ₹74.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.7b and earnings per share (EPS) of ₹74.36 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for HDFC Asset Management
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,986. 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. There are some variant perceptions on HDFC Asset Management, with the most bullish analyst valuing it at ₹3,245 and the most bearish at ₹2,610 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of HDFC Asset Management'shistorical trends, as the 16% annualised revenue growth to the end of 2027 is roughly in line with the 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although HDFC Asset Management is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for HDFC Asset Management going out to 2029, and you can see them free on our platform here..
We also provide an overview of the HDFC Asset Management Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.