Buy UTI AMC; target of Rs 1400: Motilal Oswal

Buy

Motilal Oswal's research report on UTI AMC

UTI AMC’s 3QFY26 operating revenue came in at INR3.9b (in line), reflecting a growth of 5% YoY/flat QoQ. Yield on management fees came in at 40.1bp in 3QFY26 vs 42.6bp in 3QFY25 and 41.2bp in 2QFY26. For 9MFY26, operating revenue grew 7% YoY to INR11.6b. Total opex came in at INR2.1b, registering a growth of 16% YoY but a decline of 11% QoQ. EBITDA came at INR1.8b (18% beat) in 3QFY26 (declining 6% YoY but rising 21% QoQ), and EBITDA margins stood at 45.6% in 3QFY26 vs 50.8% in 3QFY25.

Outlook

We expect UTI to report a CAGR of 15%/11%/15% in AUM/revenue/core PAT over FY25-28E. We reiterate our BUY rating with a one-year TP of INR1,400 (based on 17x FY28E EPS).

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