Nippon Life India Asset Management Ltd. share price target

We maintain our BUY recommendation on the stock

Nippon Life India AMC (NAM)’s operating revenue came in at INR5.9b (in line), resulting in a growth of 39% YoY and 3% QoQ. Yields declined to 41.3bp in 3QFY25 from 41.6bp in 2QFY25 and 44.8bp in 3QFY24. For 9MFY25, revenue came in at INR16.6b, recording a growth of 42% YoY.

We maintain our BUY recommendation on the stock

Core revenues grew 44% y-o-y/ 13% q-o-q driven by strong growth in mutual fund AUM (up 57% y-o-y/ 14% q-o-q). Overall AUM reached Rs 6.5 lakh crore (up 50% y-o-y). Blended revenue yields were at 42 bps stable q-o-q and lower by 4 bps y-o-y.

Strong retail flows led by buoyant equity markets and launch of new/innovative passive
schemes is driving strong performance.

Quarterly Update Q1FY25

We revise our rating from HOLD to BUY.

NAM India reported yet another strong quarter led by buoyant capital market flows. Core revenues grew by 43% y-o-y/ 8% q-o-q to Rs. 505 crore, while quarterly average assets under management (QAAUM) rose by 54% y-o-y /12% q-o-q.

Quarterly Update Q4FY24

We maintain our Hold recommendation on the stock.

QAAUM growth robust at 47% YoY to Rs 4.3tn at end Q4 led by a strong equity segment (+63% YoY) constituting 49% of the total

NAM: Strong growth but upside capped cut to HOLD. APOLP: Disappointing result on all fronts. ITC: Cigarette and paperboard businesses disappoint. LT: Order inflow guidance raised; maintain BUY. NTPC: Normal quarter, aggressive expansion; maintain BUY. MRCO: Domestic business still lacklustre. UTIAM: Core earnings miss estimates. ASTRA: Mixed quarter, guidance broadly intact