Stock to buy today: After doubling shareholders’ money in strong upside move from April to August 2021, URI AMC share price has been nosediving since then. This stock has been in consolidation phase for more than 6 months and now Yes Securities is expecting it to rebound. The stock that has shed near 22 per cent in 2022, is expected to go up to ₹1248 in long term. UTI AMC share price today is ₹830. So, Yes Securities is expecting up to 50 per cent rise in this Asset Management Company stock in long term.
Pointing towards the UTI AMC shares’ fundamentals that may support sharp rally in near term, Yes Securities research report says, “Employee cost was ₹0.74bn in 4QFY21, which increased to ₹1.15bn in 4QFY22, a difference of ₹0.41bn. ₹0.33bn of this differential was due to variable pay. Other opex was an extra ₹0.16bn compared with quarterly average run rate for 9MFY22.”
” ₹0.07bn of the extra cost came from additional trail fees, ₹0.02bn from charges paid to PFRDA, ₹0.02bn from payment to BCG and ₹0.04bn from cost related to digital initiatives. On the positive side, 96 employees are expected to retire over FY23-24. The saving due to this would amount to ₹0.41bn and about half of this would come in FY23,” brokerage added.
Brokerage says that overall Overall revenue yield for domestic business was maintained at 41 bps, similar to levels seen in 3QFY22 citing, “The yield for the domestic equity business is 85-90 bps. The yield for the international business is about 55 bps.”
On its suggestion to positional investors in regard tio UTI AMC shares, Yes Securities report says, “We maintain ‘BUY’ rating on UTI with a revised price target of ₹1248. We value UTI at 23x FY23 P/E for an FY21-24E EPS CAGR of 19.8%.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
