Nippon Life India Asset Management Ltd. share price target

We maintain our Buy rating with a target price of Rs 390 (28x FY23E EPS), an upside of 15%.

On sustained cost controls and improved outlook, we revise our rating to Buy from Hold with a target price of Rs 360 (28x FY23E EPS).

We maintain a Hold with a target price of Rs 284 (27x FY22E EPS)

Nippon Life India AMC (Nippon) posted modest PAT growth of 6% YoY to | 145 crore on a consolidated basis as cost rationalisation and healthy growth in other income compensated for a decline in revenues. Overall AUM...

We remain positive on the stock considering our expectations of 1) strong equity marketperformance,2)NAMgainingmarketshareunderthenewpromoters,3)costs controlwillnarrowdownthefinancialperformancegapwhencomparedwithpeers, and4)valuationsareattractiveat21.6xFY23Eearnings.OurestimatesforFY21have...

We have fine-tuned our estimates for FY2021E and FY2022E and introduce FY2023E estimates in this note. We maintain our Buy rating on the stock with a PT of Rs. 345. Nippon Life India Asset Management's (NAM's) Q2FY2021 results were encouraging. Operational numbers came above expectations, helped by cost control because of marginal increase in Assets Under Management (AUMs). The AUM decline trend seen in Q1 was arrested and AUM at Rs. 2,76,774 crore saw a marginal increase on q-o-q basis, which is encouraging. Quarterly average AUM came in at Rs. 2,00,030 crore,...

Nippon Life Asset Management (NAM) reported a Rs 250bn sequential increase in Q1FY21 AUM, largely due to the MTM effect.

Nippon Life India AMC (Nippon) reported weak earnings, primarily led by MTM losses on investments. Regressive AUM growth, amid Covid-19, kept the topline under pressure with the outlook being a bit uncertain. Industry AUM declined to | 22.3 lakh crore as of March 2020 vs. | 26.5 lakh crore as of December 2019. Equity segment saw a decline of ~24% QoQ to | 8.3 lakh crore, led by a correction in markets. Debt, liquid schemes saw ~7%, ~11% QoQ, respectively, decline in AUM due to outflows in the...

NAM reported PAT of Rs 3.7cr, down from Rs 151/149cr YoY/QoQ on account of MTM hit. Other income was negative due to sharp correction on investments in equity AUM resulting in gross MTM loss of Rs 149cr.

The current situation demands for investment opportunities in various stocks/sectors that one can look into. Due to COVID 19 pandemic, valuations for several mid to large cap stocks corrected significantly making them lucrative. And expect to remain volatile unless issue comes under control. Thus, at this juncture when market shambles and sentiments still fragile, it is prudent to invest in a well-diversified portfolio consisting of...