UTIAMC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials Breakdown

Profitability

ROCE: 23.7% and ROE: 17.5% — excellent, reflecting strong operational efficiency and shareholder value creation.

EPS: ₹53.5, with PAT rising from ₹124 Cr. to ₹216 Cr. — a solid 16.3% quarterly growth.

Debt-to-equity: 0.00 — completely debt-free, a major strength for a financial services firm.

Dividend Yield: 1.90% — attractive for income-focused investors.

Institutional Sentiment

Slight decline in both FII (-0.15%) and DII (-0.24%) holdings — neutral to mildly cautious stance.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 25.7 Slightly above industry average (24.6) — fairly valued.

P/B Ratio ~4.63 Reasonable for a high-margin asset manager.

PEG Ratio 1.59 Acceptable — valuation aligns with expected growth.

Intrinsic Value ~₹1,300–₹1,350 (est.) Current price of ₹1,370 is near fair value.

🧠 Business Model & Competitive Edge

Core Operations: Mutual fund and portfolio management across retail, institutional, and international segments.

Strengths

Trusted brand with SEBI registration and global partnerships (e.g. Shinsei, KB India Fund, Emirates India Fund)

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Expanding international footprint via Singapore subsidiary and strategic alliances.

Strong presence in pension fund management through UTI Retirement Solutions.

Challenges

Modest quarterly volume and slight institutional pullback.

RSI at 57.7 — neutral, MACD at 4.37 — mild bullish momentum.

📈 Entry Zone & Technicals

DMA 50: ₹1,331, DMA 200: ₹1,221 — price is above both, indicating strength.

RSI: 57.7 — neutral zone.

MACD: 4.37 — bullish crossover.

📌 Entry Zone: ₹1,300–₹1,340 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹1,910

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2026 Target: ₹2,946

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2027 Target: ₹4,000

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2030 Target: ₹6,357

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Holding Strategy: UTIAMC is a high-quality compounder with strong fundamentals, global reach, and zero debt. Ideal for long-term investors seeking exposure to India’s asset management boom. Accumulate during technical weakness and hold through cycles.

You can explore detailed projections on UTIAMC’s share price forecast or review analyst research on Trendlyne’s dashboard.

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