HDFC Asset Management Company Limited Beat Revenue Forecasts By 27%: Here's What Analysts Are Forecasting Next
HDFC Asset Management Company Limited (NSE:HDFCAMC) shareholders are probably feeling a little disappointed, since its shares fell 4.0% to ₹2,651 in the week after its latest first-quarter results. Revenue of ₹14b came in a notable 27% ahead of expectations, while statutory earnings of ₹66.50 were in line with what the analysts had been forecasting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HDFC Asset Management after the latest results.
Taking into account the latest results, the current consensus from HDFC Asset Management's 19 analysts is for revenues of ₹53.7b in 2027. This would reflect a notable 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 10% to ₹75.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.9b and earnings per share (EPS) of ₹74.30 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for HDFC Asset Management
There's been no major changes to the consensus price target of ₹3,109, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values HDFC Asset Management at ₹3,340 per share, while the most bearish prices it at ₹2,590. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. It's clear that while HDFC Asset Management's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HDFC Asset Management following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹3,109, with the latest estimates not enough to have an impact on their price targets.
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..
Before you take the next step you should know about the 1 warning sign for HDFC Asset Management that we have uncovered.
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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.