Results: UTI Asset Management Company Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

UTI Asset Management Company Limited (NSE:UTIAMC) investors will be delighted, with the company turning in some strong numbers with its latest results. Statutory earnings performance was extremely strong, with revenue of ₹4.5b beating expectations by 23% and earnings per share (EPS) of ₹14.60, an impressive 39%ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for UTI Asset Management

Taking into account the latest results, UTI Asset Management's eleven analysts currently expect revenues in 2025 to be ₹16.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 8.6% to ₹49.45 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹16.1b and earnings per share (EPS) of ₹48.14 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at ₹914, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values UTI Asset Management at ₹1,090 per share, while the most bearish prices it at ₹795. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await UTI Asset Management shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UTI Asset Management's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.7% annualised decline to the end of 2025. That is a notable change from historical growth of 9.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - UTI Asset Management is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards UTI Asset Management following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that UTI Asset Management's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for UTI Asset Management going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for UTI Asset Management (1 is a bit concerning) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.