Revenue Beat: UTI Asset Management Company Limited Beat Analyst Estimates By 47%

UTI Asset Management Company Limited (NSE:UTIAMC) just released its first-quarter report and things are looking bullish. Statutory revenue of ₹5.5b and earnings of ₹18.42 both blasted past expectations, beating expectations by 47% and 30%, respectively, ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from UTI Asset Management's 14 analysts is for revenues of ₹20.3b in 2026. This would reflect a decent 8.6% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 17% to ₹65.43. Before this earnings report, the analysts had been forecasting revenues of ₹19.4b and earnings per share (EPS) of ₹64.32 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

Check out our latest analysis for UTI Asset Management

The analysts increased their price target 5.6% to ₹1,352, perhaps signalling that higher revenues are a strong leading indicator for UTI Asset Management's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic UTI Asset Management analyst has a price target of ₹1,650 per share, while the most pessimistic values it at ₹965. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of UTI Asset Management'shistorical trends, as the 12% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although UTI Asset Management is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on UTI Asset Management. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple UTI Asset Management analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for UTI Asset Management that you need to be mindful 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.