IIFL Securities Stock Market Watch Today: Buy Uti Asset Mngmt Co - June 18

IIFL Securities recommends buying Uti Asset Management Company shares, with a price target of Rs. 1120. The current market price for these shares is Rs. 1063.65. This represents a potential upside of approximately 5.3%. IIFL believes that Uti Asset Management Company is well-positioned to benefit from the growing Indian mutual fund industry. The company has a strong track record of performance and a diversified product portfolio. Additionally, the company is expected to benefit from favorable regulatory tailwinds.

About Uti Asset Mngmt Co:

UTI Asset Management Company (UTI AMC) is a leading Indian mutual fund house headquartered in Mumbai. It is a joint venture between State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank (PNB) and Bank of Baroda (BoB). UTI AMC offers a wide range of mutual fund schemes across equity, debt, and hybrid categories, catering to the diverse investment needs of individuals and institutions. The company manages over ₹2 trillion (USD 28 billion) in assets under management as of March 2023.

52 Week Price Trend:

UTI Asset Management Company Ltd (UTI AMC) is a leading Indian asset management company with a strong track record. As of today, its CMP stands at Rs 1063.65, indicating a substantial appreciation relative to its 52-week high price of Rs 965. The stock has outperformed during the past year, rising from a 52-week low price of Rs 608. This upward trend reflects investor confidence in UTI AMC's financial performance and growth prospects, driven by factors such as its diverse product portfolio, strong distribution network, and experienced management team.

Stratzy's MOST Analysis:

UTI AMC, assessed by Stratzy's MOST framework, has received a BB- rating. This rating indicates a medium level of fundamental risk. Each of the four pillars—Management, Outlook, Safety, and Trend—is evaluated independently, and their combined score determines the overall rating. A BB- rating suggests that while UTI AMC demonstrates some positive aspects, it also has areas that require improvement to mitigate potential financial risks.

Company's Fundamentals:

Uti Asset Mngmt Co (UTIAMC), listed on the National Stock Exchange (NSE), exhibits a stock PE ratio of 16.73 and a PB ratio of 2.9. These ratios indicate that its current stock price is 16.73 times its earnings per share and 2.9 times its book value per share, respectively. Additionally, UTIAMC offers a dividend yield of 2.43%, implying that investors receive 2.43% of the current stock price as dividends annually. These metrics suggest that UTIAMC is moderately valued compared to its peers, offers a potential return on investment through dividends, and has room for earnings and book value growth.

Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024

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