UTI Asset Management Company Limited (NSE:UTIAMC) Just Released Its Annual Earnings: Here's What Analysts Think

Investors in UTI Asset Management Company Limited (NSE:UTIAMC) had a good week, as its shares rose 8.2% to close at ₹974 following the release of its full-year results. Results were roughly in line with estimates, with revenues of ₹17b and statutory earnings per share of ₹60.22. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for UTI Asset Management

Taking into account the latest results, the current consensus, from the eight analysts covering UTI Asset Management, is for revenues of ₹16.4b in 2025. This implies a measurable 5.7% reduction in UTI Asset Management's revenue over the past 12 months. Statutory earnings per share are forecast to fall 11% to ₹53.38 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹16.4b and earnings per share (EPS) of ₹51.72 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 ₹940, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic UTI Asset Management analyst has a price target of ₹1,140 per share, while the most pessimistic values 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.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.7% by the end of 2025. This indicates a significant reduction from annual growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 14% per year. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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. We have estimates - from multiple UTI Asset Management analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for UTI Asset Management (2 are significant!) that you need to take into consideration.

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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.