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UTIAMC - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.1

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 3.1

Stock Code UTIAMC Market Cap 12,209 Cr. Current Price 950 ₹ 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 50 995 ₹ DMA 200 1,099 ₹
Chg in FII Hold -0.16 % Chg in DII Hold 0.07 % PAT Qtr 33.7 Cr. PAT Prev Qtr 207 Cr.
RSI 44.8 MACD -2.06 Volume 8,23,914 Avg Vol 1Wk 5,14,843
Low price 896 ₹ High price 1,495 ₹ PEG Ratio 1.45 Debt to equity 0.03
52w Index 8.94 % Qtr Profit Var -72.8 % EPS 42.0 ₹ Industry PE 31.6

📈 Chart & Trend: UTIAMC is trading below both its 50 DMA (995 ₹) and 200 DMA (1,099 ₹), reflecting weak momentum and bearish structure. RSI at 44.8 indicates oversold-to-neutral levels, while MACD at -2.06 confirms bearish crossover. Bollinger Bands remain tight, suggesting consolidation with downside risk.

🔑 Momentum Signals: Current price (950 ₹) is holding near support at 930–940 ₹. Resistance levels are seen at 980 ₹ and 1,020 ₹. Volume (8.23L) is above the 1-week average (5.14L), showing strong participation but largely on selling pressure.

🎯 Entry Zone: 930–940 ₹ near support.

💰 Exit Zone: 980 ₹ (partial profit) and 1,020 ₹ (full exit).

📊 Trend Status: Consolidating with bearish bias.

Positive

  • Strong ROCE (21.4%) and ROE (16.5%) highlight profitability.
  • EPS at 42.0 ₹ supports valuation strength.
  • Dividend yield at 2.74% adds investor appeal.
  • Debt-to-equity ratio at 0.03 ensures financial stability.
  • DII holdings increased (+0.07%), showing domestic support.

Limitation

  • Price below both 50 DMA and 200 DMA confirms weak trend.
  • Quarterly PAT dropped sharply (33.7 Cr. vs 207 Cr.).
  • Quarterly profit variation at -72.8% shows earnings deterioration.
  • 52-week performance weak at 8.94% index level.
  • MACD negative crossover signals bearish momentum.

Company Negative News

  • Severe earnings decline (-72.8% variation).
  • FII holdings reduced (-0.16%), showing weaker foreign confidence.

Company Positive News

  • DII inflows (+0.07%) reflect domestic institutional support.
  • Strong ROCE and ROE metrics despite earnings volatility.
  • Dividend yield at 2.74% provides investor cushion.

Industry

  • Industry PE at 31.6 suggests sector trading at moderate valuations compared to UTIAMC’s lower P/E (19.6), indicating relative undervaluation.
  • Asset management sector facing margin pressures but supported by long-term investment demand.

Conclusion

UTIAMC is consolidating with bearish bias, trading below key moving averages and showing weak momentum. Entry near 930–940 ₹ is only suitable for cautious trades with exits at 980–1,020 ₹. While fundamentals remain strong with ROCE/ROE and dividend yield, sharp earnings decline and weak technicals limit conviction. Best suited for short-term speculative trades with strict stop-loss discipline.

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