This AMC Stock Can Surge Upto 24.25%, Gets A Buy

Prabhudhas Lilladher, has suggested investors to buy shares of UTI Asset Management Company, as it believes that the stock price would potentially rise upto 24.5%. The brokerage has suggested a target price of Rs 830 per share. Here are the details below.

UTI AMC is the investment manager to the schemes of UTI Mutual Fund. It also manages offshore funds and provides support to the Specified Undertaking of the Unit Trust of India. Its market capitalisation is Rs 8,329.42 crore.

According to the brokerage, UTI AMC has navigated through a tough phase from FY16-20 and has improved. It is because of debt resurgence attributable to stronger risk management and continuous client engagement and equity revival driven by bolstering investment process resulting in better performance and distributor mind share.

Its equity inflows improved from -0.5% to 5.9% over FY20-22 because most large banks and distributors re-empaneled UTI by Mar'20. Plus its equity BND share grew from 9% to 12% over last 2 years.

Brokerage believes that, "from FY23-25E operating yield should sustain at 19bps while core profits would see a healthy CAGR of ~14% driven by better operating leverage (due to focus on cost control). Valuation is compelling at 10x on FY25E core EPS. Assigning a multiple of 15x (ex-cash) we arrive at target price of Rs830 per share.

The current market price of UTI AMC stock is Rs 655.95 per share, it was down by 0.22% on intraday basis. In one year the share price has fallen by 26.31%, but over three years it has grown by 27.58%. Its 52-week high is at Rs 1,025 per share and 52-week low is at Rs 595 per share.

Disclaimer:

The stocks have been picked from the brokerage report of Prabhudas Lilladher, Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.