Buy UTI AMC; target of Rs 1300: Motilal Oswal

Motilal Oswal's research report on UTI AMC

UTI AMC’s operating revenue grew 29% YoY to INR3.8b (in line). Yields remained flat YoY and QoQ at 42.6bp in 3QFY25. For 9MFY25, revenue grew 26% YoY to INR10.9b. EBITDA was INR1.9b (4% beat) in 3QFY25, +68% YoY, and EBITDA margin improved to 50.8% in 3QFY25 from 39.2% in 3QFY24. Total opex came in at INR1.8b, recording 5% YoY growth. As bp of QAAUM, the costs declined YoY to 21bp in 3QFY25 from 25.8bp in 3QFY24 (vs. 22.2bp in 2QFY25). PAT for the quarter declined 14% YoY/34% QoQ to INR1.7b in 3QFY25 (8% beat). For 9MFY25, PAT grew 15% YoY to INR7.1b.

Outlook

We reiterate our BUY rating with a TP of INR1,300, based on 24x Sep’26E Core EPS.