UTI Asset Management Company Limited (NSE:UTIAMC) Just Beat EPS By 44%: Here's What Analysts Are Forecasting For This Year

UTI Asset Management Company Limited (NSE:UTIAMC) just released its first-quarter report and things are looking bullish. Statutory revenue of ₹5.3b and earnings of ₹19.91 both blasted past expectations, beating expectations by 39% and 44%, respectively, ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for UTI Asset Management

After the latest results, the ten analysts covering UTI Asset Management are now predicting revenues of ₹18.4b in 2025. If met, this would reflect a credible 2.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹62.06, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹16.8b and earnings per share (EPS) of ₹54.07 in 2025. So it seems there's been a definite increase in optimism about UTI Asset Management's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹1,082, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values UTI Asset Management at ₹1,320 per share, while the most bearish prices it at ₹870. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that UTI Asset Management's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than UTI Asset Management.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around UTI Asset Management's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at ₹1,082, with the latest estimates not enough to have an impact on their price targets.

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 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for UTI Asset Management you should know about.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com