Motilal Oswal: UTI AMC beats profit forecasts, keeps Buy rating with Rs 1,040 target

what happened

According to TradingView, brokerage Motilal Oswal maintains a Buy rating on UTI AMC shares with a one-year target price of Rs 1,040. Revenue from operations in 2QFY27 came in at INR 4 billion, in line with forecasts, up 2% year on year and 5% from the previous quarter. Yield on management fees rose to 39.6 bp from 38.6 bp in 1QFY27.

Operating expenses fell 14% year on year to INR 2.1 billion, 6% below the analysts' estimate. EBITDA reached INR 1.9 billion, with a margin of 47.7% against 38.1% a year earlier. Net profit was INR 1.3 billion, 32% above forecast, helped by lower costs and better yields. Profit for the first half of the year grew 10% year on year.

The brokerage raised its earnings estimates by 9% for FY27 and 3% for FY28, reflecting better yields and cost efficiency. The target price is based on 24 times FY28E core EPS.

why it matters

This is a single brokerage note on a mid-sized Indian asset manager. A strong quarter and upgraded estimates matter mainly for UTI AMC's own shares, and such notes usually have little effect on the broader market.

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