Check Before You Invest : UTI Asset Management Company Ltd

Snapshot

Q.1 Which industry/sub-sector does UTI Asset Management Company Ltd belong to?

UTI Asset Management Company Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.

Q.2 Is UTI Asset Management Company Ltd a good quality company?

UTI Asset Management Company Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is UTI Asset Management Company Ltd undervalued or overvalued?

UTI Asset Management Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is UTI Asset Management Company Ltd a good buy now?

UTI Asset Management Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd revenue growth is 8.4% for FY-2025, which is below its 5-year CAGR of 11.69%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Return on capital employed is 23.7% for FY-2025, which is above its 5-year historical median of 17.7%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Return on Asset is 15.3%, which is above its 5-year historical median of 11.8%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Return on equity is 17.8% for FY-2025, which is above its 5-year historical median of 14%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Cash conversion cycle is -5 days, above its 5-year historical median of -46 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.34	0.3
ROE	17.8	14
ROCE	23.7	17.7
Cash Conversion Cycle	-5 days	-46 days

Q.6 Gross Profit margin of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 63.1% for FY-2025, which is above its 5-year median of 54.2%, indicating increasing margins.

Q.7 Operating Profit Margin of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 63.48% for FY-2025, which is above its 5-year median of 54.22% indicating increasing margins.

Q.8 Net Profit Margin of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Net Profit Margin is 45.09% for FY-2025, is above with its 5-year median of 39.43%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	63.1	54.2
Operating Profit Margin	63.48	54.22
Net Profit Margin	45.09	39.43

Q.9 Debt to Equity ratio of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of UTI Asset Management Company Ltd?

UTI Asset Management Company Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of UTI Asset Management Company Ltd?

Promoters hold 0.00% of the UTI Asset Management Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of UTI Asset Management Company Ltd vs industry peers?

UTI Asset Management Company Ltd revenue CAGR is 11.69%, compared to the industry median CAGR of 37.3%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	8.4	37.3
Gross Profit Growth	13.8	42.2
Operating Profit Growth	13.3	18.7
Net Profit Growth	8.8	49

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.34	0.38
ROE	17.8	16.4
ROCE	23.7	19.35
Cash Conversion Cycle (days)	-5.48	1

Valuation & price assessment

Q.1 Stock return of UTI Asset Management Company Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 6.81% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	6.8%	13.7%	-3.7%

Q.3 Valuation ratios of UTI Asset Management Company Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	23	22.38	33.19
Price to Book	3.32	3.43	5.67
Price to Sales	8.51	42.62	22.04
EV to EBITDA	14.18	16.08	23.11

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