The mutual fund house, UTI Asset Management Company (AMC) continued on its three-day winning streak on Wednesday, The stock gained nearly 5% today as its RSI indicator flattened out and signaled a buying trend ahead. Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher has recommended buying and accumulating UTI AMC stock ahead for a target price of ₹795 apiece.
At the time of writing, UTI AMC traded at ₹726.65 apiece, up by ₹30.10 or 4.32%. The stock has at least jumped 4.6% with an intraday high of ₹728.85 apiece on BSE. As of now, the market value stood at ₹9,229 crore.
UTI AMC's share price has been on a gaining spree since the start of this week. From June 26 till date, the stock has rallied by nearly 7% on BSE. Last week, on Friday, the stock was near ₹683.5 level.
Today, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock after taking support near the 600 zone making a double bottom formation on the daily chart has picked up well and currently after a short dip has taken support near the important 50EMA level of 685 zone and indicated a pullback with improving bias to form a rising channel pattern."
She explained that the RSI has also flattened out after the slide and indicating a trend reversal showing strength to signal a buy and has much upside potential to carry on the momentum still further ahead.
Hence, Parekh said, "We suggest buying and accumulating the stock for an upside target of 795 while keeping the stop loss at 675."
Recently, media reports stated that major government-owned financial services providers like State Bank of India (SBI), LIC, Punjab National Bank, and Bank of Baroda are looking for selling their stake in the UTI AMC. Together, these entities own a 45.16% stake in the AMC.
For the full fiscal year FY23, UTI AMC's net profit declined to ₹439.68 crore versus ₹534.59 crore in FY22. As of March 31, 2023, assets under management stood at ₹15.56 lakh crore, rising by 15% from ₹13.49 lakh crore as of March 31, 2022.
In FY23, the mutual fund house also paid a final dividend of 220% aggregating to ₹22 per share. In the previous fiscal, the dividend payout was 210% of ₹21 per share.
So far in 2023, UTI AMC's stock has dipped by nearly 16% on BSE. However, in a year, the stock has advanced by nearly 13%.
