⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
UTIAMC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | UTIAMC | Market Cap | 12,712 Cr. | Current Price | 987 ₹ | High / Low | 1,495 ₹ |
| Stock P/E | 17.8 | Book Value | 276 ₹ | Dividend Yield | 2.64 % | ROCE | 23.7 % |
| ROE | 17.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,101 ₹ | DMA 200 | 1,184 ₹ |
| Chg in FII Hold | -0.35 % | Chg in DII Hold | 0.29 % | PAT Qtr | 207 Cr. | PAT Prev Qtr | 166 Cr. |
| RSI | 34.5 | MACD | -41.0 | Volume | 56,521 | Avg Vol 1Wk | 1,40,547 |
| Low price | 905 ₹ | High price | 1,495 ₹ | PEG Ratio | 1.11 | Debt to equity | 0.00 |
| 52w Index | 13.8 % | Qtr Profit Var | 45.3 % | EPS | 49.2 ₹ | Industry PE | 25.3 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from 166 Cr. to 207 Cr., showing strong growth momentum.
- Profit Margins: EPS at 49.2 ₹ reflects healthy profitability.
- Debt Ratios: Debt-to-equity at 0.00, debt-free balance sheet ensures strong financial stability.
- Cash Flows: Likely positive given consistent earnings and dividend payouts.
- Return Metrics: ROCE at 23.7% and ROE at 17.5% highlight efficient capital utilization.
💹 Valuation Indicators
- P/E Ratio: 17.8, lower than industry average (25.3), suggesting undervaluation.
- P/B Ratio: ~3.57 (Current Price / Book Value), reasonable compared to peers.
- PEG Ratio: 1.11, indicates valuation is aligned with growth expectations.
- Intrinsic Value: Current price (987 ₹) trades below DMA 50 (1,101 ₹) and DMA 200 (1,184 ₹), signaling undervaluation in technical terms.
🏢 Business Model & Competitive Advantage
- UTIAMC operates in asset management, offering mutual funds and investment solutions.
- Competitive advantage lies in brand recognition, diversified product offerings, and strong retail investor base.
- Debt-free status and consistent profitability provide resilience in cyclical markets.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 950–1,000 ₹, close to current levels and below DMA averages.
- Long-Term Holding: Suitable for investors seeking exposure to financial services and asset management. Strong fundamentals support holding, with potential upside as valuations normalize.
Positive
- Quarterly PAT improved from 166 Cr. to 207 Cr.
- ROCE (23.7%) and ROE (17.5%) highlight efficient capital use.
- Dividend yield at 2.64% provides attractive shareholder return.
Limitation
- Stock trading below DMA 50 and DMA 200, reflecting bearish sentiment.
- RSI at 34.5 indicates oversold conditions.
- MACD negative (-41.0), showing weak technical momentum.
Company Negative News
- FII holdings decreased (-0.35%), showing reduced foreign investor confidence.
- Stock has delivered modest 52-week performance (13.8%).
Company Positive News
- Quarterly PAT growth of 45.3% indicates strong operational improvement.
- DII holdings increased (+0.29%), reflecting domestic institutional support.
Industry
- Industry P/E at 25.3, higher than UTIAMC’s valuation, suggesting sector trades at premium multiples.
- Asset management industry benefits from rising financialization, retail participation, and long-term savings growth.
Conclusion
- UTIAMC is fundamentally strong with debt-free status, efficient capital use, and consistent profitability.
- Valuation is attractive compared to industry, offering potential upside.
- Entry near 950–1,000 ₹ provides favorable risk-reward; long-term holding is suitable for investors seeking exposure to financial services growth.
I can also prepare a financial services peer comparison HTML table (UTIAMC vs HDFC AMC, Nippon Life AMC, Aditya Birla AMC) to highlight relative valuation and efficiency metrics if you’d like.