HDFC AMC reported Q2 standalone net profit of ₹7.5B, up from ₹7.2B year-on-year.
The company's net profit beat Street estimates, which were pegged at ₹7.3B.
Kotak Institutional Equities upgraded HDFC AMC to Buy from Add with a target price of ₹2,800, citing its large scale, established performance track record, strong brand, benign regulation, and sticky SIP flows.
Key flagged risks include performance moderation, competition from smaller AMCs, and distributor preference for higher commissions, with required investments in alternatives, offshore offerings, distribution, and talent retention.