IIFL Securities Stock Idea: Buy Uti Asset Mngmt Co with Target Rs 1390

IIFL Securities recommends buying Uti Asset Mngmt Co shares with a target price of Rs 1390, a potential upside of 2.1% from the current market price of Rs 1360.9. The brokerage firm's positive outlook is based on the company's strong track record, diversified product portfolio, and robust distribution network. Investors looking to capitalize on the growth potential of India's asset management industry may consider this recommendation.

About Uti Asset Mngmt Co:

UTI Asset Management Company Limited (UTI AMC) is one of India's leading asset management companies, offering a comprehensive range of financial products and services to retail and institutional investors. The company manages a diverse portfolio of equity, debt, hybrid, and alternative investment funds, with a total asset under management (AUM) of over INR 1.51 lakh crore as of March 31, 2023. UTI AMC is a subsidiary of the Unit Trust of India (UTI), a government-owned financial institution, and is headquartered in Mumbai. The company has a strong track record of performance and has consistently delivered superior returns to its investors over the long term.

52 Week Price Trend:

Uti Asset Mngmt Co (NSE: UTIAMC) is currently trading at Rs 1360.9, having experienced significant gains from its 52-week low of Rs 608. However, the stock remains below its 52-week high of Rs 965, indicating potential for further upward movement. UTIAMC is an asset management company and a subsidiary of UTI Mutual Fund. Its recent performance suggests investor confidence in the company's ability to navigate market fluctuations and deliver returns.

Stratzy's MOST Analysis:

UTIAMC's BB- rating within Stratzy's MOST framework suggests that the company has medium fundamental risks. This rating is derived from scores in Management (B), Outlook (B), Safety (B-), and Trend (B-). The framework indicates potential concerns in some areas, such as safety, where the score of B- highlights a higher level of risk. The overall BB- rating implies a moderate level of fundamental risks for UTIAMC, warranting cautious consideration before investing.

Company's Fundamentals:

Uti Asset Mngmt Co (NSE:UTIAMC) is a company listed on the National Stock Exchange (NSE) of India. Its stock price-to-earnings (PE) ratio of 16.73 indicates that investors are willing to pay Rs. 16.73 for every Re. 1 of earnings per share. The PB ratio of 2.9 implies that the market value of the company's assets is 2.9 times its book value. Lastly, the dividend yield of 2.43% represents the annual dividend paid per share as a percentage of the current stock price, providing investors with a regular income stream. These metrics provide insights into the company's valuation, earnings potential, and income distribution policy.

Fundamental and Technical information provided in this blog were last updated on 31 Oct, 2024

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