UTI Asset Management Company Receives 'Hold' Rating from MarketsMOJO, Strong Fundamentals and Potential Undervaluation Make it a Good Long-Term Hold

UTI Asset Management Company, a midcap finance and non-banking financial company (NBFC), has recently received a 'Hold' rating from MarketsMOJO on 2024-11-13. This downgrade is based on the company's strong long-term fundamental strength, with an average return on equity (ROE) of 13.78%.
In the past 6 consecutive quarters, UTI Asset Management Company has declared positive results, with its highest DPR(Y) at 78.12% and NET SALES(Q) at Rs 538.40 crore. Its PBT LESS OI(Q) has also grown at a significant rate of 29.9%.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, DOW, and OBV indicating a bullish trend. Additionally, with an ROE of 19.4, the stock is fairly valued with a price to book value of 3.7. It is also trading at a discount compared to its average historical valuations.

Over the past year, UTI Asset Management Company's stock has generated a return of 63.69%, while its profits have risen by 49.4%. This results in a PEG ratio of 0.4, indicating a potential undervaluation of the stock. Moreover, the company offers a high dividend yield of 3.7% at its current price.

The stock also has a high institutional holding of 67.39%, indicating that these investors have better capability and resources to analyze the company's fundamentals compared to retail investors.

In terms of market performance, UTI Asset Management Company has outperformed the market (BSE 500) with a return of 63.69% in the last year, compared to the market's return of 26.05%. With its strong fundamentals and potential undervaluation, the stock may be a good hold for investors looking for long-term growth.