Shares of HDFC Asset Management Company (HDFC AMC) traded with gains of over 2 per cent or Rs 96.3 at Rs 3,960 after the company's October-December quarter results. In early trade, the stock zoomed to the day's high price of Rs 4,060, gaining more than 5 per cent over the previous close.

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For the December quarter, the company's consolidated PAT grew to Rs 642 crore as against Rs 487.92 crore during the same quarter last year. In the previous September quarter, the company's PAT was recorded at Rs 576.61 crore.

Revenue from operations at the asset management entity also grew year-on-year (YoY) to Rs 934.63 crore versus Rs 671.32 crore during the corresponding quarter of the fiscal year 2023-24.

Furthermore, as per the company, its AUM market share as of the December quarter stood at 11.5 per cent. In the actively managed fund space, the AUM share was 12.8 per cent.

Should you buy, hold or sell HDFC AMC shares after Q3 earnings?

Primarily after the AMC's third-quarter earnings, global earnings are largely divided on the stock outlook.

Global brokerage has reiterated its earlier 'equal weight' call on the stock with the target pegged at Rs 4,120, implying potential gains of nearly 7 per cent. The brokerage said that the operating profit beat at the AMC was driven by higher equity yields on account of the full impact of rationalization of commissions taken in the September quarter. Further, the other half of the beat was on the back of cost control measures. 

The international brokerage expects PAT growth to moderate to 16 per cent in FY26. 

Jefferies is bullish on the counter and has continued with its 'buy' stance with the target pegged at Rs 5,000, implying possible upside of as much as 29 per cent. The brokerage emphasised that lower investment income moderated the reported earnings. Nonetheless, industry net inflows remain strong. Moreover, it added that investors should keep an eye on market share trends as well as scheme performances.

Meanwhile, Hong Kong-based brokerage CLSA reiterated its earlier 'accumulate' call with the target slashed to Rs 4,710 as against Rs 4,920 per share. The suggested target means that the stock has the potential to run up to 22 per cent.

Citi, on the other hand, is bearish on the stock's prospects and has maintained its 'sell' rating with the target price raised to Rs 3700 from Rs 3600, meaning potential downside of over 4 per cent. Core earnings robust at +8 per cent QoQ despite sluggish equity MTM , it noted.

Stringent cost control (core cost-to-income -230 bps QoQ/-500 bps YoY) & full impact of back book repricing are key drivers, added the brokerage.