Citi upgrades rating on AMC stock, raises target to Rs 2,850—Do you have it?

HDFC Asset Management Company (HDFC AMC) share price traded lower on Wednesday. The stock declined 0.42 per cent to close at Rs 2,588.10. It opened at Rs 2,620.00 and moved between a high of Rs 2,627.80 and a low of Rs 2,575.50. The company’s market capitalisation stands at Rs 1.11 lakh crore.

Citi upgrades rating, raises target

Citi upgraded HDFC AMC to neutral from sell and raised the target price to Rs 2,850 from Rs 1,275. The brokerage said the upgrade reflects sustained strength in performance across most key actively-managed high-yielding categories.

Add Zee Business as a Preferred Source

Citi also highlighted the company’s increased focus on scaling up non-mutual fund businesses and noted limited visibility of any near-term regulatory overhang. However, it flagged elevated competitive pressure and reducing distribution moats as key concerns for incumbents like HDFC AMC.

Bonus issue

HDFC AMC recently issued a 1:1 bonus to shareholders. For every share held, investors received one bonus share. The record date for the bonus issue was November 26, 2025, and the stock turned ex-bonus on the same day. This doubled shareholder count but led to a proportional adjustment in the stock price. Price of stock was also adjusted on the same day.

Q2 FY26 earnings

The company posted a net profit of Rs 718.43 crore for Q2 FY26, a jump of nearly 25 per cent YoY from Rs 576.61 crore. Revenue from operations rose 16 per cent YoY to Rs 1,027.40 crore during the quarter, compared to Rs 887.21 crore in the same period last year.

AUM rises 14 per cent

The firm’s assets under management stood at Rs 8.73 lakh crore at the end of Q2 FY26, up 14 per cent YoY. The number of live individual accounts rose 26 per cent YoY to 25.94 million, reflecting strong retail participation.