Buy Uti Asset Mngmt Co: IIFL Securities's Target Price Rs 1120
IIFL Securities recommends buying Uti Asset Management Company (AMC) with a target price of Rs 1120, representing a potential upside of 5.26% from the current market price of Rs 1063.65. This bullish stance is driven by the company's strong asset management business, solid financial performance, and growth potential in the mutual fund industry.
About Uti Asset Mngmt Co:
UTI Asset Management Company (UTI AMC) is a mutual fund house based in India. It was established in 1964 and is the oldest mutual fund house in the country. UTI AMC manages a range of mutual fund schemes, including equity funds, debt funds, hybrid funds, and index funds. The company has a strong track record of performance and has consistently ranked among the top mutual fund houses in India. UTI AMC is a subsidiary of UTI Mutual Fund, which is a public sector undertaking under the Ministry of Finance, Government of India.
52 Week Price Trend:
UTI Asset Management Company (UTIAMC) is currently trading at Rs 1063.65, significantly higher than its 52-week low of Rs 608. This gain of over 42% highlights the positive market sentiment towards the company. Despite a challenging economic environment, UTIAMC's strong track record in managing assets, its wide distribution network, and its focus on retail investors have contributed to its resilience. Analysts remain optimistic about the company's long-term prospects and its ability to maintain its position as a leading asset manager in India.
Stratzy's MOST Analysis:
UTIAMC has received a rating of BB- from Stratzy's MOST Framework. This indicates a medium level of fundamental risks associated with the company. The rating is based on the company's management, outlook, safety, and trend. The company's management team is experienced and has a good track record. The company's outlook is positive, with strong growth potential in the future. The company's safety is moderate, with some financial risks. The company's trend is positive, with strong momentum in the recent past. Overall, the company is considered to have a medium level of fundamental risks.
Company's Fundamentals:
Uti Asset Mngmt Co (UTIAMC), listed on NSE, offers insights into its financial health through key ratios. Its Stock PE of 16.73 indicates that investors are willing to pay 16.73 times the company's annual earnings per share. The PB Ratio of 2.9 suggests that the company's market capitalization is 2.9 times its book value, implying a premium valuation. Furthermore, the Dividend Yield of 2.43% indicates the percentage of a company's share price that is paid out as dividends, providing investors with a steady income stream. These ratios collectively provide a snapshot of UTIAMC's valuation, profitability, and dividend payout strategy.
Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024
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