Source: Company website
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SACHIN
Target: ₹1,278
CMP: ₹1,029.90
UTI Asset Management Company’s Q3-FY26 PAT was impacted by exceptional items but beat estimates, while core revenue grew in single digits with yields declining marginally. Flows were mixed, with equity and hybrid net outflows of ₹220 crore in Q3, although strong ETF/index inflows of ₹6,500 crore drove total inflows of ₹5,900 crore; 9MFY26 overall net inflows remained robust at ₹21,500 crore.
QAAUM increased 12 per cent y-o-y to ₹3.9 lakh crore, but market share erosion persisted across equity and hybrid segments, despite SIP asset under management (AUM) rising 17 per cent y-o-y to ₹44,800 crore.
We expect core PAT to grow at a 10 per cent CAGR (overall PAT at 8 per cent) over FY25-FY28, supported by a 13 per cent CAGR in mutual fund QAAUM (Quarterly average AUM). We have rolled forward our valuation to FY28. The stock currently trades at 15x on FY28E EPS, and we continue to value it at 18x (around 8 per cent discount to its long-term mean) on FY28E EPS. This implies a revised target price of ₹1,278 (vs ₹1,235). The 23 per cent correction over the past three months appears overdone. Due to attractive valuation, we upgrade the stock to Buy from Neutral.
Key risks: Decline in equity AUM, scheme performance, and market share losses remain key monitorables.
Published on January 22, 2026
