Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Investor Presentation (November 2022)
12 slides from Uti Asset Management's investor presentation, November 2022
Slide 1: Equity Market Insight
Equity Market Insight November 2022 Information MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS Classification: UTI AMC - Confidential CAREFULLY.
Slide 2: Domestic Sectors Performance
Domestic Sectors Performance 1 Month 3 Months 1 Year NIFTY 50 5.4% NIFTY MIDCAP 100 6.1% NIFTY MIDCAP 100 3.2% BROAD MARKET INDICES NIFTY 100 4.6% NIFTY SMALLCAP 100 5.6% NIFTY 500 2.2% NIFTY 500 4.0% NIFTY 500 5.2% NIFTY 100 2.0% NIFTY SMALLCAP 100 2.6% NIFTY 50 5.0% NIFTY 50 1.9% NIFTY MIDCAP 100
Slide 3: Global Markets Performance
Global Markets Performance 1 Month 3 Months 1 Year US 14.0% BRAZIL 12.5% BRAZIL 12.1% GERMANY 9.4% INDIA 5.0% INDONESIA 7.7% FRANCE 8.8% INDONESIA 2.1% INDIA 1.9% JAPAN 6.4% US -0.3% SOUTHAFRICA -1.2% AUSTRALIA 6.0% GLOBAL MARKET INDICES JAPAN -0.8% UK -2.0% SWITZERLAND 5.5% AUSTRALIA -1.2% JAPAN -4
Slide 4: Earnings Trend
Earnings Trend S&P BSE Sensex EPS Trend Nifty 50 EPS Trend 16% 44% 8% 976 776 840 457 485 489 539 314 341 356 399 399 395 407 268 240 251 225 161 172 131 92 Mar-23E Mar-24E Mar-93 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 M
Slide 5: Earnings Expectations
Earnings Expectations Trend in Consensus Nifty 50 EPS0 FY21 FY22 FY23 FY24 1100 1000 976 900 840 800 Nifty 50 EPS 733 700 600 533 500 400 Apr-20 Aug-20 Dec-20 Apr-21 Aug-21 Dec-21 Apr-22 Aug-22 Nov-22 5 Information Classification: UTI AMC - Confidential Source: Bloomberg. Data as of Nov 3, 2022
Slide 6: P/E valuations
P/E valuations Nifty 50 Trailing P/E Nifty 50 Forward P/E Trailing P/E Average P/E +1 std dev -1 std dev Forward P/E Average P/E +1 std dev -1 std dev 30 24 28 22 EXPENSIVE 26 EXPENSIVE 20 24 19.59 23.6 P/E Multiple 18.7 P/E Multiple FAIRLY VALUED 22.16 18 22 FAIRLY VALUED 20 20.1 16 16.0 18 14 16.6
Slide 7: P/B Ratio & RoE
P/B Ratio & RoE Nifty 50 Trailing P/B Nifty 50 Return on Equity (RoE) Trailing P/B Average P/B +1 std dev -1 std dev Return on Equity 4.0 20 EXPENSIVE 18 3.5 3.4 16.97 FAIRLY VALUED 3.28 P/B Multiple 16 3.0 RoE 2.9 14 2.5 2.3 12 2.0 CHEAP 10 1.5 8 Nov-12 Nov-14 Nov-16 Nov-18 Nov-20 Nov-22 Nov-12 Nov
Slide 8: P/B Ratio: Mid caps & Small caps
P/B Ratio: Mid caps & Small caps Nifty Midcap 150 Trailing P/B Nifty Smallcap 250 Trailing P/B Trailing P/B Average P/B +1 Std Dev -1 Std Dev Trailing P/B Average P/B +1 Std Dev -1 Std Dev 4.5 4.0 4.0 EXPENSIVE 3.5 EXPENSIVE 3.00 3.6 3.5 3.0 2.9 FAIRLY VALUED 3.35 FAIRLY VALUED P/B Multiple P/B Mult
Slide 9: Equities v/s Bonds
Equities v/s Bonds Nifty 50 Yield vs 10 Year G-Sec Yield Yield Difference Avg. Yield Differnce 3 2 Long-term Yield difference -1.05% 1 Yield Difference (%) EQUITIES FAVORABLE - (1) (2) FIXED INCOME FAVORABLE Current Yield difference -2.36% (3) Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19
Slide 10: Large caps v/s Mid caps
Large caps v/s Mid caps Nifty 50 valuations versus Nifty Midcap 100 Nifty 50 P/E premium over Nifty Midcap 100 Index P/E (LHS) Average (LHS) Forward P/E Nifty Midcap 100 (RHS) 50% 35 40% Nifty Midcap 100 Forward P/E: 24.39 30 30% Long Term Average: -0.46% 20% 25 10% 20 0% -10% 15 -20% 10 -30% Nifty
Slide 11: Key take away
Key take away ▪ The FED remains on the hiking path to counter record inflation; Probability of US recession has risen to 60% (Bloomberg consensus) ▪ Europe faces growth risks, inflation and an energy crisis; while China’s growth is impacted by the zero-COVID approach ▪ The Dollar has remained strong
Slide 12: Thank You
Thank You The information on this document is provided for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely fut
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