UTIAMC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | UTIAMC | Market Cap | 12,209 Cr. | Current Price | 950 ₹ | High / Low | 1,495 ₹ |
| Stock P/E | 19.6 | Book Value | 291 ₹ | Dividend Yield | 2.74 % | ROCE | 21.4 % |
| ROE | 16.5 % | Face Value | 10.0 ₹ | DMA 50 | 995 ₹ | DMA 200 | 1,099 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.07 % | PAT Qtr | 33.7 Cr. | PAT Prev Qtr | 207 Cr. |
| RSI | 44.8 | MACD | -2.06 | Volume | 8,23,914 | Avg Vol 1Wk | 5,14,843 |
| Low price | 896 ₹ | High price | 1,495 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.03 |
| 52w Index | 8.94 % | Qtr Profit Var | -72.8 % | EPS | 42.0 ₹ | Industry PE | 31.6 |
📊 UTIAMC shows moderate fundamentals. ROE (16.5%) and ROCE (21.4%) reflect decent efficiency, while EPS of 42.0 ₹ supports profitability. Dividend yield of 2.74% adds investor appeal, and debt-to-equity ratio of 0.03 ensures financial stability. However, quarterly PAT collapsed (33.7 Cr. vs 207 Cr.), showing severe earnings volatility. Valuation is reasonable with P/E at 19.6 compared to industry average of 31.6, though PEG ratio of 1.45 suggests growth is priced at a premium. Technical indicators (RSI 44.8, MACD -2.06) show weak momentum, with price trading below both 50 DMA (995 ₹) and 200 DMA (1,099 ₹).
💡 Entry Price Zone: Attractive accumulation between 900 ₹ – 940 ₹ near support levels. Buying above 1,000 ₹ carries valuation and momentum risk.
📈 Long-Term Holding Guidance: UTIAMC is moderately attractive for long-term holding (3–5 years). Investors should monitor earnings consistency and institutional flows. Holding is justified if profitability stabilizes and mutual fund industry growth sustains.
Positive
- Healthy ROCE (21.4%) and ROE (16.5%).
- EPS of 42.0 ₹ supports profitability.
- Dividend yield of 2.74% provides steady returns.
- Low debt-to-equity ratio (0.03) ensures financial stability.
Limitation
- Quarterly PAT collapsed (33.7 Cr. vs 207 Cr.).
- Weak technical momentum (RSI 44.8, MACD -2.06).
- PEG ratio of 1.45 indicates premium valuation relative to growth.
- Price trading below both 50 DMA and 200 DMA.
Company Negative News
- Severe quarterly profit decline (-72.8%).
- FII holdings decreased (-0.16%), showing reduced foreign confidence.
Company Positive News
- Dividend yield remains attractive at 2.74%.
- DII holdings increased slightly (+0.07%), showing cautious domestic support.
Industry
- Industry PE at 31.6, while UTIAMC trades at 19.6, showing relative undervaluation.
- Asset management sector benefits from rising retail participation in mutual funds.
Conclusion
⚠️ UTIAMC is a moderately attractive candidate with decent efficiency and undervaluation relative to peers, but weak earnings momentum limits its appeal. Best suited for disciplined investors who accumulate near 900–940 ₹. Exit opportunities may arise near 1,050–1,100 ₹ if profitability stabilizes. Conservative investors should wait for improved earnings before committing heavily.
Would you like me to extend this into an asset management sector peer overlay HTML (e.g., UTIAMC vs HDFC AMC, Nippon Life AMC, and Aditya Birla AMC) to highlight relative valuation and efficiency positioning?