UTIAMC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Let’s unpack UTIAMC (UTI Asset Management Company) — a well-established financial services player showing solid fundamentals with selective caution signs.

🧾 Core Financials

ROE: 16.3%, ROCE: 21.0% — excellent returns, especially for a capital-light business model

Debt-to-Equity: 0.00 — zero debt gives it financial flexibility and lowers risk profile significantly

EPS: ₹55.9 — strong earnings per share considering the price level

PAT YoY: Decline of 6.81% — suggests volatility or lower fee income; keep an eye on quarterly revenue streams

💡 Valuation Metrics

Metric Value Insight

P/E Ratio 23.8 Slightly undervalued compared to industry PE of 25.9

P/B Ratio ~3.69 Reflects optimism; acceptable given strong ROE

PEG Ratio 2.15 Indicates premium valuation given modest earnings growth

Dividend Yield 1.96% Fairly attractive for passive income seekers

💼 Business Model & Competitive Edge

Core Offering: Mutual funds, portfolio management, retirement solutions

Revenue Drivers: Management fees, advisory income, new product onboarding

Moat & Strengths

Wide distribution via banks, brokers, and digital channels

Trusted brand with decades of AUM growth

Healthy regulatory compliance record

Challenges

Margin pressure due to competitive AMCs and fintech players

Fee compression trends and lower alpha generation

📊 Technical Snapshot

RSI: 44.9 — neutral zone, neither oversold nor overbought

MACD: 29.7 — bullish crossover suggests possible momentum revival

DMA Trend: Trading above 50-DMA & 200-DMA — consistent medium-term uptrend

Volume: Slight dip below 1-week average — possible short-term cooling

🎯 Entry Zone & Long-Term View

Suggested Entry: ₹1,260–₹1,290 — near 50-DMA offers cushion before further accumulation

12-Month Target Range: ₹1,500–₹1,600 based on ROE consistency and dividend appeal

Investment Outlook

Solid long-term hold for low-volatility, dividend-driven investors

Growth could reaccelerate with higher equity inflows and digital onboarding

If you’re building a financial services portfolio, want to compare this with HDFC AMC or Nippon AMC for positioning? I can whip up a comparison. Or maybe we dive into fee income trends across AMCs to forecast the next earnings cycle. Just say the word. 📈

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