NEW LIFE HIGH! UTI AMC share price soars on good Q1 expectations, stock up 80% from issue price

On expectations of good earnings in the first quarter, UTI Asset Management Company (AMC) shares touched a new high of Rs 994 per after surging for 8 per cent on the BSE in intraday trade today, in an otherwise weak market. It breached its earlier high of Rs 947 per share, hit on July 23, 2021. 

In the past week, the stock has outperformed the market by surging nearly 15 per cent compared with a flat performance by the benchmark index. The stock traded at its highest level since the market debut on October 12, 2020 risen 111 per cent from its 52-week low of Rs 471 per share.

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The stock has surged by 79 per cent from its initial public offer issue price of Rs 554 per share.

In the past three months, UTI AMC has gained 63 per cent after the company returned to profitability during the March-ended quarter (Q4FY21) by posting a consolidated net profit of Rs 133.62 crore, as compared to a loss of Rs 27.58 crore in the corresponding period a year ago.

The revenue from operations grew 112 per cent to Rs 289.24 crore in Q4 FY21 as against Rs 136.32 crore posted in the same period a year ago. SIP AUM had increased by Rs 5,930 crore or 75.4 per cent from Rs 7,861 crore as of March 31, 2020 to Rs 13,791 crore as of March 31, 2021.

"UTI AMC has registered an increase in its assets under management in this challenging environment and will continue to strive for growing its business in future. The mega vaccination drive across the country is a positive development which can help in the economic recovery," the management said.

UTI AMC is a professionally managed company with no identifiable promoters. T. Rowe Price International – a global investment management firm is its largest shareholder. SBI, Bank of Baroda and LIC divested their stake to below 10 per cent and now hold no special rights. Punjab National Bank, which has no other AMC business, has a 15.24 per cent holding.