UTI Asset Management Company Ltd.
ISIN: INE094J01016 • Market Cap: ₹11,484 Cr
The 5-Pillar Quality Audit for UTI Asset Management Company Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (44.5%), Return on Capital Employed (15.5%), and equity compounding (9.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (3.2%) and 3Y PAT CAGR (-12.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 24.90 vs PEG of 3.41 and Dividend Yield of 4.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at —, backed by 66.5% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (66.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 66.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 3.2%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking UTIAMC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 69/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Financial Services Sector Peer Comparison
Compare UTIAMC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| UTI Asset Management Company Ltd. (UTIAMC)Current | 69/100 | ₹11,484 Cr | 24.90 | 15.5% | 0.00 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: UTI Asset Management Company Ltd.
Q:What is the 5-Pillar Fundamental Score for UTI Asset Management Company Ltd. (UTIAMC)?
UTI Asset Management Company Ltd. has a RupeeTools Fundamental Score of 69/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (73/100), Financial Health (83/100), Growth (28/100), Valuation (70/100), and Ownership Quality (95/100).
Q:Is UTIAMC fundamentally strong for long-term investment?
UTIAMC currently holds a moderate quality rating of 69/100. While it operates in the Financial Services sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does UTIAMC pass the Coffee Can Investing filter?
No. UTIAMC does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does UTIAMC compare against other Financial Services peers?
Within India's Financial Services sector, UTIAMC trades at a P/E of 24.90 and generates an ROCE of 15.5%. Compare its 5-Pillar score of 69/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.