Shares of HDFC Asset Management Company (HDFC AMC) declined by 3.4%, hitting an intraday low of ₹5,561.70 on the BSE on Thursday, October 16, even as the company posted impressive financial results for the second quarter of FY2025. The asset management giant reported a 24.5% year-on-year (YoY) jump in its profit after tax (PAT), which surged to ₹718 crore, compared to ₹576.9 crore in the same quarter last year.
Despite the strong earnings, the stock witnessed selling pressure as investors booked profits following the recent rally. The correction comes right after HDFC AMC announced a 1:1 bonus issue, its first-ever in company history, which has drawn significant attention from retail investors. The bonus issue reflects the company’s confidence in its growth trajectory and strong balance sheet.
Market analysts believe that HDFC AMC’s robust performance was supported by healthy inflows into equity mutual funds and a steady increase in assets under management (AUM). The company continues to maintain a dominant position in the Indian mutual fund industry, driven by consistent fund performance and a strong brand reputation under the HDFC group umbrella.
However, the short-term dip in share price could be attributed to broader market volatility and profit-taking activities by investors. Experts suggest that long-term investors might view this correction as a buying opportunity, given the company’s solid fundamentals, strong earnings visibility, and shareholder-friendly policies.
With the Q2 numbers reaffirming HDFC AMC’s growth potential and the upcoming bonus issue enhancing liquidity, analysts expect the stock to remain in focus in the coming sessions as investors look for value in the financial sector.
