UTI AMC (UTIAMC)

FairStock Score: 68/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

Strengths

• Zero debt (D/E 0.00) and strong capital position
• High returns on equity (16.64%) and capital employed (23.72%)
• Robust free cash flow of ₹660 Cr supports the 2.63% dividend yield
• Piotroski F-Score of 8/9 and Altman Z-Score of 3.85 indicate low financial distress risk

Concerns

• Revenue declined 1.18% and profit fell 19.20%, showing fading business momentum
• Price of ₹1,035.65 is well above Graham Number of ₹572.84, implying negative margin of safety
• Promoter holding is 0.00%, raising ownership-alignment questions
• P/E of 17.79 and P/B of 3.52 are not compelling for a shrinking-earnings business

AI Analysis

Let me evaluate UTI AMC the way I would any business: by its economics, its durability, and the price I pay. The economics are attractive in absolute terms—no debt, a 23.72% ROCE, a 16.64% ROE, and ₹660 crore of free cash flow. The Piotroski score of 8/9 and Altman Z-Score of 3.85 further confirm a financially solid enterprise. Asset management is a capital-light business, and UTI AMC clearly generates cash; that is the part I love. But a great balance sheet is not the same as a growing franchise. Revenue has dipped 1.18% while profits have fallen 19.20%. The latest quarter's ₹423 crore sales and ₹124 crore profit show the machine still works, but momentum is fading. In a competitive AMC industry, fee rates and market flows can hurt an incumbent; I cannot ignore that. On valuation, the P/E of 17.79 and P/B of 3.52 are not cheap for a company whose profit is shrinking. Graham would be cautious: the Graham Number of ₹572.84 sits far below the current price, leaving no margin of safety by his conservative standards. The DCF figure of ₹2,279.95 appears more generous, but DCF outcomes hinge on assumptions, and I prefer a margin of safety to comforting models. The 2.63% dividend yield and strong free cash flow do provide some downside cushion, but the zero promoter holding bothers me; I like owners with skin in the game. Overall, UTI AMC is a sound business in a difficult phase, neither a bargain by Graham's numbers nor a booming grower by its latest results. I would only pick it up at a price that offers clear protection, or after seeing growth return.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer