Shares of UTI AMC jumped 8.18% to reach an intraday high of ₹ 689.30 apiece on the National Stock Exchange (NSE) on Tuesday after PPFAS Mutual Fund bought more than 1.12 million shares of the company via a block deal.
According to the bulk and block deals data on the NSE, PPFAS Mutual fund bought 11,22,643 shares at a price of ₹ 636.00. This takes the transaction value to 71.40 crores. The names of the sellers were not ascertained immediately. At 02:29 PM, the stock was trading at ₹ 678.70 apiece, up 6.57%.
UTI AMC was the first to introduce mutual funds in India and it is focused solely on investment management and related services. It is a small-cap company with a market capitalization of ₹ 8,091 crores. The company has an ideal return on equity of 15.58% and an ideal debt-to-equity ratio of 0.05.
The AMC reported a weak October to December quarter (Q3FY23), with 3% sequentially lower core operating profits owing to sharp compression in equity yields coupled with elevated staff costs.
Prabhudas Lilladher has a buy call on the shares of UTI AMC with a target price of ₹ 830.00 per share. This translates to an upside of 22.29% as compared to its current share price.
HDFC Securities has a buy call on its shares with a target price of ₹ 950, indicating an upside of 39.97% as compared to its current share price of ₹ 678.70.
Written by Simran Bafna
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