UTI Asset Management Company Receives 'Hold' Rating from MarketsMOJO, Remains Strong in Finance and NBFC Sector

UTI Asset Management Company, a leading finance and non-banking financial company (NBFC) in the midcap segment, has recently received a 'Hold' rating from MarketsMOJO on October 8, 2024.
The decision to downgrade the stock to 'Hold' is based on the company's strong long-term fundamental strength, with an average return on equity (ROE) of 14.68%. Additionally, UTI Asset Management Company has declared positive results for the last five consecutive quarters, with its DPR(Y) at a high of 78.12%, NET SALES(Q) at Rs 529.22 crore, and PBDIT(Q) at Rs 351.15 crore.

Technically, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. With an ROE of 17.4, the stock is fairly valued with a 3.5 price to book value. It is also trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 52.74%, while its profits have risen by 35.2%. The PEG ratio of the company is 0.6, indicating a healthy growth potential.

Moreover, UTI Asset Management Company has a high dividend yield of 3.9%, making it an attractive option for investors looking for stable returns. The company also has a high institutional holding of 66.93%, indicating that these investors have better capability and resources to analyze the fundamentals of the company compared to retail investors.

In fact, UTI Asset Management Company is among the top 1% of companies rated by MarketsMOJO across all 4,000 stocks, showcasing its market-beating performance. In the last year, the stock has generated a return of 52.74%, outperforming the market (BSE 500) returns of 35.27%.

Overall, while the stock has been downgraded to 'Hold' by MarketsMOJO, UTI Asset Management Company remains a strong player in the finance and NBFC industry, with a solid track record of positive results and market-beating performance.