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UTIAMC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | UTIAMC | Market Cap | 12,435 Cr. | Current Price | 969 ₹ | High / Low | 1,495 ₹ |
| Stock P/E | 17.4 | Book Value | 276 ₹ | Dividend Yield | 2.68 % | ROCE | 23.7 % |
| ROE | 17.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,035 ₹ | DMA 200 | 1,139 ₹ |
| Chg in FII Hold | -0.35 % | Chg in DII Hold | 0.29 % | PAT Qtr | 207 Cr. | PAT Prev Qtr | 166 Cr. |
| RSI | 41.6 | MACD | -24.7 | Volume | 56,706 | Avg Vol 1Wk | 74,812 |
| Low price | 921 ₹ | High price | 1,495 ₹ | PEG Ratio | 1.08 | Debt to equity | 0.00 |
| 52w Index | 8.32 % | Qtr Profit Var | 45.3 % | EPS | 49.2 ₹ | Industry PE | 27.5 |
📊 Financials
- Revenue Growth: Strong, PAT improved to 207 Cr from 166 Cr
- Profit Margins: EPS at 49.2 ₹, showing solid profitability
- Debt Ratios: Debt-to-equity at 0.00, debt-free balance sheet
- Cash Flows: Healthy, supported by consistent profit growth
- Return Metrics: ROCE 23.7% and ROE 17.5% indicate strong efficiency
💹 Valuation
- P/E Ratio: 17.4, lower than industry average (27.5), suggesting undervaluation
- P/B Ratio: ~3.5 (Current Price / Book Value), moderate
- PEG Ratio: 1.08, indicating fair valuation relative to growth
- Intrinsic Value: Fairly valued with potential upside
🏢 Business Model & Health
- Business Model: Asset management company, reliant on mutual funds and investment products
- Competitive Advantage: Strong brand presence, diversified offerings, and government-linked trust
- Overall Health: Financially sound with consistent profitability, debt-free operations
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 950–980 ₹ levels (close to support)
- Long-Term Holding: Suitable for conservative investors; dividend yield (2.68%) adds stability
✅ Positive
- Debt-free balance sheet ensures financial strength
- Strong ROCE (23.7%) and ROE (17.5%) show efficiency
- Dividend yield of 2.68% provides investor returns
⚠️ Limitation
- Stock trading below DMA 50 and DMA 200, showing bearish trend
- Valuation fair but growth prospects moderate
- Volume relatively low compared to peers
📉 Company Negative News
- FII holdings decreased (-0.35%), showing reduced foreign investor confidence
- Technical indicators (RSI 41.6, MACD -24.7) suggest weak momentum
📈 Company Positive News
- DII holdings increased (+0.29%), showing domestic institutional support
- Quarterly PAT improved (207 Cr vs 166 Cr), showing operational growth
🏭 Industry
- Asset management industry P/E: 27.5, higher than UTIAMC’s valuation
- Sector demand driven by rising retail participation in mutual funds and financial products
🔎 Conclusion
- UTIAMC is financially strong with debt-free operations and consistent profitability
- Valuation is attractive compared to industry peers, offering potential upside
- Entry near 950–980 ₹ offers value; suitable for long-term investors seeking stable dividend and exposure to financial services growth