Buy UTI Asset Management Company, target price Rs 1445: JM Financial

JM Financial has buy call on UTI Asset Management Company with a target price of Rs 1445. The current market price of UTI Asset Management Company is Rs 844.35. Time period given by analyst is one year when UTI Asset Management Company Ltd. price can reach defined target.

UTI Asset Management Company Ltd., incorporated in the year 2002, is a Small Cap company (having a market cap of Rs 10696.43 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, Lease Rentals, Interest and Dividend for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 305.99 Crore, up .33 % from last quarter Total Income of Rs 304.98 Crore and down -12.60 % from last year same quarter Total Income of Rs 350.11 Crore. Company reported net profit after tax of Rs 94.40 Crore in latest quarter.


Investment Rationale
UTI AMC is currently trading at 13.1x FY24E EPS which is at a discount of 55%/40% to HDFC AMC/NAM. If the transaction goes through, the brokerage sees significant re-rating potential in UTI AMC, given that the transaction will result in combination of two strong domestic brands and distribution presence. It maintains BUY valuing UTI AMC at 17.5x FY24E EPS resulting in a TP of INR 1,000.