UTI Asset Management Company Limited

Financial Services — Asset Management · NSE

₹870.75−₹3.60 (−0.41%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of UTI Asset Management Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

UTI Asset Management Company (P) Ltd. is a privately owned investment manager. It manages mutual funds for its clients. The firm invests in money market, fixed income, and public equity markets of India. It employs in-house research while making its investments.

IndustryAsset Management

SectorFinancial Services

Employees1,248

Annual revenue₹1,539 Cr

How does it make money?

Turns over ₹1,539 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹47 left at the operating level before interest, tax and depreciation. Each of its 1,248 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

13 analysts covering the stock expect revenue to grow about 73.5% and earnings to grow about 8.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+73.5%

Est. earnings growth+8.3%

Analysts13

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +36% while net margin moved -32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+36%

Margin effect-32%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 10.8% is steady
✗ Profit has declined at 2.6% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

24.3x

3Y Median

21.8x

40 monthly readings · mean 21.9x · range 15.6x–30.1x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 11% above its 3y median of 21.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 43% above the peer median of 17.0x.

vs. its own history

Fair

21.8x median over 40 months · +11%

vs. sector peers

Expensive

17.0x median of 4 peers · +43%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.6x

PEG

1.01

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 43% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.8% CAGR
Latest reported year was 6.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 45%✓ 47.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 9.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 21.8x✓ 24.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹11,193 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.48x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹35.81

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.13x

High

High leverage

Revenue Growth (YoY)

6.7%

Modest

Modest growth

Profit Growth (YoY)

24.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

4.59%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹338 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

63.3%

Good

Healthy core-business profitability

Net Margin

26.6%

Good

Strong bottom-line conversion

Current Ratio

8.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

890.4 / 894.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,131 Cr	₹1,182 Cr	₹1,445 Cr	₹1,539 Cr	+10.8%
EBITDA	₹537 Cr	₹535 Cr	₹762 Cr	₹725 Cr	+10.5%
EBITDA Margin	47.5%	45.2%	52.7%	47.1%	—
PAT (Net Profit)	₹437 Cr	₹766 Cr	₹731 Cr	₹404 Cr	-2.6%
EPS	₹34.44	₹60.22	₹57.11	₹31.41	-3.0%
ROE	11.3%	17.4%	15.9%	9.0%	—
ROCE	14.9%	19.3%	19.8%	14.2%	—
Free Cash Flow	₹286 Cr	₹179 Cr	₹467 Cr	₹338 Cr	+5.7%

🟢 Revenue has grown at 10.8% a year over 3 years.

🟢 EBITDA has grown at 10.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 47.1% over 3 years.

🔴 PAT (Net Profit) has shrunk at 2.6% a year over 3 years.

🔴 EPS has shrunk at 3.0% a year over 3 years.

🔴 ROE has fallen from 11.3% to 9.0% over 3 years (-2.3 pts).

🟡 ROCE has held roughly flat at 14.2% over 3 years.

🟢 Free Cash Flow has grown at 5.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,043 Cr

Total Liabilities

₹539 Cr

Total Debt

₹141 Cr

Cash & Equivalents

₹36 Cr

Operating Cash Flow

₹407 Cr

Capex

-₹68 Cr

Shareholding (proxy)

Institutional Holding

52.6%

Insider Holding

34.7%

Corporate Actions

Dividend Rate

₹40

Ex-Dividend Date

14 Jul 2026

Analyst Consensus

Recommendations

10 Buy · 6 Hold · 1 Sell

Target Price (Mean)

₹1,055.76

+21.2% vs CMP

Target Range

₹840 – ₹1,200

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 mixed5 general

What UTI Asset Management Investors Missed Before The Fall

Simply Wall Street, 18 Oct

UTI Asset Management Company Stock Signals to Watch This Week

Univest, 24 Sept

UTI Asset Management (UTIAMC.NS) Holds the Midpoint at ₹879.35 as ₹835 Support Anchors the Range - Key Reversal Day

https://www.siam.in/, 30 Sept

Top 10 AMCs (Asset Management Companies) in India 2026

Groww, 16 Jul

UTIAMC Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

ETMarkets Smart Talk | Two-year market consolidation may set stage for next bull run: UTI AMC’s Ajay Tyagi

The Economic Times, 27 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 4 tripwires holding · see Key things to watch ↑