UTI AMC shares climb to new 52-week high as core Q4 PAT jumps 70% on year

Shares of UTI AMC notched fresh 52-week high of Rs 1005.15, gaining as much as 6.11 per cent, over the previous close as the company posted a good Q4.The company's Q4 PAT stood at Rs 163 crore, up 90 per cent on year and down 12 per cent sequentially. Furthermore, the core profit aŌer tax for the fourth quarter (excluding M2M gains, income from sale of investments and other non‐operating income) was Rs 97 crore, up by 70% YoY and 22% QoQ. 

Revenue from operations for the January‐March quarter stood at Rs 416 crore, up by 37% YoY and down by 7% QoQ. The core revenue from operatoons for Q4 FY23‐24 consisting entirely of sale of services amounted to Rs 318 crore, up by 18% YoY and 10% QoQ.

As part of its key business highlights for the quarter, the company informed that gross Inflow mobilized through SIP for the quarter ended 31st March 2024 stood at Rs 1,772 crore. SIP AUM as of 31st March 2024, stood at Rs  30,747 crore, a growth of 3.67% as compared to 31st December 2023. Also, digital purchase transactions rose by 2.53 lakh, an increase of 7.85% as against the quarter ended 31st December 2023.

Also, on the sidelines, the company's board  proposed a final dividend of Rs 24 per equity shares and an additional special dividend of Rs 23 per equity share, taking overall final dividend to Rs 47 per equity share for financial year 2023 – 2024. The same is subject to the approval of shareholders at the ensuing Annual General Meeting.  

Brokerage firm Incred Equities likes  UTI AMC considering its schemes’ improving performance leading to steady inflow and healthy AUM, rationalization of operating expenses, strengthening operating performance and a favourable risk-reward ratio. Thus, it retains its ADD rating on the stock with a higher target price of Rs1,100 (Rs1,050 earlier), corresponding to ~13.4x FY26F EPS. However, key downside risks viewed by it are lower growth and weak yields impacting profitability..