UTI Asset Management Company Receives 'Buy' Rating

UTI Asset Management Company, a leading finance and NBFC company in the midcap segment, has recently received a 'Buy' rating from MarketsMOJO on 2023-10-30. This upgrade comes as a result of the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 13.78%.
In addition, the company has shown positive results in September 2023, with its highest operating cash flow of Rs 395.43 crore and a 25.9% growth in profits. The stock is also currently in a bullish range, with technical indicators such as MACD, Bollinger Band, and OBV all pointing towards a positive trend.

One of the key factors contributing to the 'Buy' rating is the company's attractive valuation, with a price to book value of 2.7 and a ROE of 14.2. This indicates that the stock is trading at a fair value compared to its historical valuations. Furthermore, over the past year, while the stock has generated a return of 6.07%, its profits have risen by 19.1%, resulting in a PEG ratio of 1.

Another positive aspect of UTI Asset Management Company is its high institutional holdings at 66.63%. These investors have better capability and resources to analyze the fundamentals of companies, making their increased stake of 0.75% in the previous quarter a promising sign for the company's future.

However, it is important to note that the stock has underperformed the market in the last year, with a return of 6.07% compared to the market's 16.72%. This could be a potential risk for investors to consider.

Overall, with its strong fundamental strength, positive technical indicators, and attractive valuation, UTI Asset Management Company seems to be a promising stock to consider for investment in the midcap segment.