Buy UTI Asset Management Company, target price Rs 890: HDFC Securities

HDFC Securities has buy call on UTI Asset Management Company with a target price of Rs 890. The current market price of UTI Asset Management Company is Rs 658.05. 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 8329.89 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
Given its attractive valuation, the brokerage maintains BUY with a reduced TP of INR890 (it ascribes a lower multiple at 19x Mar-24E NOPLAT + Mar-23E cash and investments, following a derating in AMC sector due to soft earnings growth outlook, even as it rolls forward earnings).


Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 39.5 per cent, DIIs 49.94 per cent.