The shares of the oldest mutual fund in India, UTI Asset Management Company Ltd opened at Rs 779 on Tuesday up 4% from its previous close of Rs 749.80. Till 12 pm the stock had scaled by more than 15% and was trading at Rs 864. The stock has climbed by more than 32% in the past month.
The stock prices started rallying after Tata Mutual Fund initiated talks with public sector banks to increase its stake in UTI Asset Management Company in a bid to grow its business. Tata Mutual Fund already holds around a 2.62 per cent stake in the company.
In Q1FY23, the company reported a dip of 12 per cent in its Revenue from the operation which stood at Rs 306 crore as against Rs 346 Crores which it earned in the same quarter a year ago.
In the same period, their net profit also dipped by 39 per cent to ₹94 crore as against ₹155 crore logged in Q1FY22 largely due to lower income.
As of the June quarter, UTI AMC has an average asset under the management of ₹2.24-lakh crore up from Rs 1.87-lakh crore in Q1 of last year.
The stock reached its 52-week high of Rs 1,216.20 in August last year. Currently, it is trading at a discount of approximately 27% from its high. In the last five years, the stock has given a return of more than 71% to its investors.
UTI Mutual Fund, formerly known as the Unit Trust of India is the oldest and one of the most significant mutual funds in India, registered with SEBI. It was the first to introduce Mutual Funds in India and is focused solely on Investment management and related services.
Written by – Anoushka Roy
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