Buy UTI AMC., target price Rs 1,600: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on UTI Asset Management Company with a target price of Rs 1,600. The current market price of UTI Asset Management Company is Rs 1366. UTI AMC., incorporated in 2002, is a Small Cap company with a market cap of Rs 17470.73 crore, operating in Financial Services sector.

UTI Asset Management Company Ltd. key products/revenue segments include Sale of services, Income From Sale Of Share & Securities, Interest and Rental Income for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 540.07 crore, up 1.19% from last quarter Total Income of Rs 533.74 crore and up 33.16% from last year same quarter Total Income of Rs 405.58 crore. The company has reported net profit after tax of Rs 263.08 crore in the latest quarter.

The company's top management includes Mr.Dinesh Kumar Mehrotra, Mr.Kiran Kumar Tarania, Mr.Flemming Madsen, Mr.Rajeev Kakar, Ms.Dipali Hemant Sheth, Mr.Deepak Kumar Chatterjee, Mr.Narasimhan Seshadri, Mrs.Jayashree Vaidhyanathan, Mr.Imtaiyazur Rahman, Mr.Srivatsa Desikamani. The company has B S R & Co. LLP as its auditors. As on 30-09-2024, the company has a total of 13 crore shares outstanding.

Investment Rationale
Efforts in terms of fund performance, new product launches, and scaling up of SIPs through digital partnerships will aid equity AUM growth of UTI Asset Management Company. New geographies & products will drive UTI's international growth; UTI RSL will gain from pension demand growth. Motilal Oswal Financial Services expects FY24-27 AUM/revenue/core PAT CAGR of 20%/18%/29%. The stock trades at FY26E P/E of 17x. The brokerage has set a target price of Rs 1600 for the UTI AMC stock.