UTIAMC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | UTIAMC | Market Cap | 12,210 Cr. | Current Price | 951 ₹ | 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 | 979 ₹ | DMA 200 | 1,080 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.07 % | PAT Qtr | 33.7 Cr. | PAT Prev Qtr | 207 Cr. |
| RSI | 46.4 | MACD | -8.49 | Volume | 1,18,048 | Avg Vol 1Wk | 89,210 |
| Low price | 896 ₹ | High price | 1,495 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.03 |
| 52w Index | 9.11 % | Qtr Profit Var | -72.8 % | EPS | 42.0 ₹ | Industry PE | 30.0 |
📊 Core Financials
Revenue Growth: PAT declined sharply (₹33.7 Cr vs ₹207 Cr), showing significant volatility.
Profit Margins: Margins under pressure despite strong asset base.
Debt Ratios: Debt-to-equity 0.03, virtually debt-free.
Cash Flows: Stable operating cash flows from AMC operations.
Return Metrics: ROCE 21.4%, ROE 16.5% — strong efficiency and shareholder returns.
💹 Valuation Indicators
P/E Ratio: 19.6, below industry average (30.0), indicating undervaluation.
P/B Ratio: ~3.3 (Price ₹951 / Book Value ₹291), moderate.
PEG Ratio: 1.45, reasonable relative to growth.
Intrinsic Value: Fair value closer to ₹900–920, current price slightly above intrinsic.
Dividend Yield: 2.74%, attractive compared to peers.
🏢 Business Model & Competitive Advantage
Operates in asset management and mutual fund services.
Strong presence in retail and institutional investment management.
Competitive edge: brand trust, diversified fund offerings, and government-linked heritage.
Challenges: profit volatility, competition from private AMCs, and market-linked earnings.
📈 Entry Zone & Long-Term Guidance
Entry Zone: ₹900–920 (value zone near intrinsic).
Long-Term Holding: Suitable for dividend-seeking investors, with moderate growth potential.
✅ Positive
ROCE 21.4% and ROE 16.5% reflect strong efficiency.
Debt-to-equity negligible (0.03).
Dividend yield 2.74% attractive.
DII holdings increased (+0.07%).
⚠️ Limitation
PAT declined sharply (-72.8%).
Valuation multiples moderate but earnings volatility high.
FII holdings decreased (-0.16%).
🚨 Company Negative News
RSI at 46.4 indicates weak momentum.
MACD negative (-8.49), showing bearish technical trend.
Profitability under pressure despite strong fundamentals.
🌟 Company Positive News
Dividend yield strong at 2.74%.
Technical support near DMA 50 & 200.
Stable institutional support from DIIs.
🏭 Industry
Asset management industry driven by mutual fund penetration, retail investor growth, and regulatory reforms.
Industry PE ~30.0, UTIAMC trades at discount.
Growth drivers: rising financial literacy, SIP inflows, and long-term wealth creation.
📌 Conclusion
UTIAMC is a moderately strong AMC stock with solid returns, low debt, and attractive dividend yield. However, profit volatility limits upside. Entry advisable near ₹900–920. Long-term holding suitable for investors seeking steady dividends and exposure to mutual fund industry growth, provided they enter at value levels.
Would you like me to compare UTIAMC directly with HDFC AMC and Nippon Life AMC to highlight relative strengths and valuations?