UTIAMC - Investment Analysis

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

Investment Rating: 4.1

🧠 Fundamental Analysis of UTI Asset Management Company (UTIAMC)

✅ Strengths

Strong Return Metrics

ROE: 16.3%

ROCE: 21.0% — excellent capital efficiency, ideal for long-term compounding

Zero Debt

Debt-to-Equity: 0.00 — clean balance sheet, low financial risk

Reasonable Valuation

P/E: 23.8 vs Industry PE: 25.9 — slightly undervalued

PEG Ratio: 2.15 — indicates growth priced in, but not excessive

EPS: ₹55.9 — solid earnings base

Dividend Yield: 1.96% — decent for passive income seekers

Technical Support

Price near DMA 50 (₹1,297) and comfortably above DMA 200 (₹1,171)

RSI: 44.9 — neutral zone, not overbought

⚠️ Concerns

Recent Profit Dip

PAT Qtr: ₹237 Cr vs ₹87.5 Cr — strong sequential growth, but YoY Qtr Profit Var: -6.81%

Needs monitoring for consistency

Decline in Institutional Holding

FII Hold ↓ 0.15%

DII Hold ↓ 0.24% — slight reduction, but not alarming

Volume Weakness

Current volume below 1-week average — may indicate short-term consolidation

📉 Ideal Entry Price Zone

Entry Zone: ₹1,250–₹1,300

Near DMA 50 and RSI support

Offers a good balance between valuation and trend support

🧭 Long-Term Investment Outlook

UTIAMC is a strong candidate for long-term investment, especially for investors seeking exposure to India’s growing asset management and financial services sector. Its high ROE/ROCE, zero debt, and stable earnings make it a solid compounder.

Holding Period: 3–5 years

Ideal for long-term wealth creation

Reassess only if ROE drops below 12% or PEG exceeds 3.0

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹1,450–₹1,500

Near 52-week high and psychological resistance

Full Exit

If ROE drops below 12% for 2+ quarters

If PEG ratio rises above 3.5 without earnings growth

If price breaks below ₹1,200 and fails to recover

Reinvest: On dips near ₹1,200–₹1,250 if fundamentals remain intact

Would you like a comparison with other AMCs like Nippon Life India AMC or HDFC AMC to see how UTIAMC stacks up in terms of growth and valuation?

Edit in a page