UTI Asset Management Company Adjusts Valuation Grade Amid Strong Financial Metrics

UTI Asset Management Company has recently undergone a valuation adjustment, reflecting its financial metrics and market position within the finance and non-banking financial company (NBFC) sector. The company currently boasts a price-to-earnings (PE) ratio of 17.82 and a price-to-book value of 2.83. Its enterprise value to EBITDA stands at 11.38, while the EV to EBIT is recorded at 11.87. Notably, UTI AMC has a robust return on capital employed (ROCE) of 25.78% and a return on equity (ROE) of 15.91%, indicating strong operational efficiency.
In comparison to its peers, UTI AMC's valuation metrics position it favorably. For instance, while UTI AMC's PE ratio is higher than that of Manappuram Finance, which has a PE of 9.92, it is lower than Aditya AMC's PE of 20.54. Additionally, UTI AMC's EV to EBITDA ratio is competitive against peers like CreditAccess Grameen and IIFL Finance, both of which also exhibit attractive valuations. This evaluation adjustment highlights UTI AMC's solid financial standing amidst a diverse competitive landscape.