UTI Asset Management Company: Strong Fundamentals and Market-Beating Performance Make it a Good Long-Term Investment

UTI Asset Management Company, a midcap finance/NBFC company, has recently been downgraded to a 'Hold' by MarketsMOJO on October 24, 2024. This decision was based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 14.68%.
In the past 5 consecutive quarters, UTI Asset Management Company has declared positive results, with a DPR(Y) of 78.12% and a growth in net sales of 31.10% at Rs 1,394.35 crore. Its PAT(9M) has also increased to Rs 602.63 crore.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and DOW indicating a bullish trend. Additionally, 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.

Over the past year, UTI Asset Management Company has generated a return of 58.82%, while its profits have risen by 35.2%. This results in a PEG ratio of 0.6, indicating a good investment opportunity. Moreover, the company offers a high dividend yield of 3.9% at the current price.

With a high institutional holding of 67.39%, UTI Asset Management Company has the support of investors with better capability and resources to analyze the fundamentals of companies. This has also contributed to its market-beating performance, with a return of 58.82% in the last year, compared to the market (BSE 500) return of 34.29%.

Overall, while the stock has been downgraded to a 'Hold', UTI Asset Management Company has shown strong fundamental strength and market-beating performance, making it a good investment option for the long term.