UTI AMC rallies 6%, hits new high in weak market; here's why

UTI AMC stock: Analysts believe that improving capital market returns are expected to boost equity AUM growth, aiding the topline and treasury gains for Asset Management Companies.

UTI Asset Management Company (AMC) share price

 

Shares of UTI Asset Management Company (AMC) hit a record high of ₹1,422.85, as they rallied 6 per cent on the BSE in Thursday's intra-day trade in an otherwise weak market on expectations of a healthy business outlook.

 

The stock surpassed its previous high of ₹1,407.95, touched on December 12, 2024.  READ STOCK MARKET LATEST UPDATES LIVE

What’s driving UTI AMC stock?

 

Industry quarterly average assets under management or QAAUM reversed their declining trend and grew by ~8 per cent since Mar 2025 led by strong capital markets returns and healthy net inflows. The systematic investment plan or SIP inflows remained robust, reiterating retail investors’ confidence. In June 2025, the mutual fund SIP inflows hit a fresh peak of ₹27,269 crore, up by 2 per cent from ₹26,688 crore in May. This is the first time that SIP inflows crossed the ₹27,000 crore mark.

 

 

Improving capital market returns are expected to boost equity AUM growth, aiding the topline and treasury gains. SIP inflows are expected to remain strong, according to analysts at InCred Equities.

 

“We appreciate the overall healthy scheme-wise delivery by the industry which, in turn, continues to attract equity AUM. We believe the following key catalysts will continue to aid the inflow momentum - improving capital market sentiment and rising purchasing power, especially of the younger demographic segment, and falling interest rates. Healthy equity fund inflows are aiding the yield movement, and we expect overall yields to remain healthy in the medium term,” the brokerage firm said in sector report.

 

Meanwhile, the Union Budget 2025-26 presented a clear, future-focussed blueprint. The theme of the Union Budget for 2025-26 was "Sabka Vikas" stimulating balanced growth of all regions. The budget also prioritises consumption-led expansion through revised tax slabs and increased deductions, significantly enhancing the disposable income of middle-class households. For the mutual fund industry, these developments are transformative. As more individuals seek structured investment avenues, institutions like UTI have a pivotal role to play.   ALSO READ | Syrma SGS Technology hits 52-week high; rises 10% in two days; Details 

Despite strong mutual funds growth, India’s mutual funds penetration (MF AUM-to-GDP ratio) remains relatively low compared to developed countries and some developing peers as well. However, low mutual funds penetration in India also reflects immense opportunities. While only a small fraction of the population currently invests in mutual funds, this very gap signals untapped potential. The opportunity is further amplified by India’s rapidly growing middle class, which is seeing rising disposable incomes and a growing appetite for financial investments beyond traditional options, UTI AMC said in its FY25 annual report.  Recent product launches (Quant Fund launched in Q4FY25 and Multi-Cap Fund in Apr’25) are likely to support equity inflows. Ongoing traction in hybrid funds and the rollout of smart beta and thematic offerings further enhance UTI AMC’s positioning across investor segments, according to Motilal Oswal Financial Services (MOFSL).   

The brokerage firm expects UTI AMC to report AUM/Revenue/Core PAT CAGR of 17 per cent/13 per cent/20 per cent over FY25-27. Sustained strong performance has been a key re-rating driver for AMC stocks. UTI AMC’s discount to other players has widened over the past few months, MOFSL said in June 2025 report. It reiterates BUY rating on UTI AMC with a one-year target price of ₹1,550, based on 19x FY27E EPS (28x Core EPS).  Meanwhile, ICICI Prudential Asset Management Company has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).

 

ICICI Prudential AMC is a joint venture between ICICI Bank and Prudential Corporation Holdings Limited, operating since 1998. It is the largest asset management company in India in terms of active mutual fund quarterly average assets under management (QAAUM) with a market share of 13.3 per cent as of March 31, 2025 (Source: CRISIL Report).   ALSO READ | Cryogenic OGS shares post bumper debut, list at 90% premium on BSE SME

About UTI AMC

 

UTI AMC is Investment Manager to UTI Mutual Fund. UTI AMC is registered as Portfolio Manager with SEBI and through its subsidiary it acts as Fund manager for Alternate Investment Fund (AIF), among others. It also has a countrywide network of branches along with a diversified distribution network.