Check Before You Invest : Nippon Life India Asset Management Ltd

Q: Which industry/sub-sector does Nippon Life India Asset Management Ltd belong to?

Nippon Life India Asset Management Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.

Q: Is Nippon Life India Asset Management Ltd a good quality company?

Nippon Life India Asset Management Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Nippon Life India Asset Management Ltd undervalued or overvalued?

Nippon Life India Asset Management Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 45.02, Historic Median: 31.81. Price to Book, Current: 14.78, Historic Median: 9.46. Price to Sales, Current: 25.42, Historic Median: 21.72. EV to EBITDA, Current: 33.95, Historic Median: 26.25

Q: Is Nippon Life India Asset Management Ltd a good buy now?

Nippon Life India Asset Management Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd revenue growth is 35.8% for FY-2025, which is above its 5-year CAGR of 13.15%, indicating faster growth.

Q: Gross Profit margin of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Gross profit margin which is the profit after deduction of direct costs, is 77.3% for FY-2025, which is in line with its 5-year median of 77.8%, indicating stable margins.

Q: Operating Profit Margin of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 64.61% for FY-2025, which is above its 5-year median of 60.46% indicating increasing margins.

Q: Net Profit Margin of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Net Profit Margin is 57.64% for FY-2025, is in line with its 5-year median of 57.64%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 77.3, Historic Median: 77.8. Operating Profit Margin (%), Current: 64.61, Historic Median: 60.46. Net Profit Margin (%), Current: 57.64, Historic Median: 57.64

Q: Return on Asset of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Return on Asset is 28.4%, which is above its 5-year historical median of 21.7%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Return on capital employed is 41.5% for FY-2025, which is above its 5-year historical median of 31%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Nippon Life India Asset Management Ltd

Snapshot

Q.1 Which industry/sub-sector does Nippon Life India Asset Management Ltd belong to?

Nippon Life India Asset Management Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.

Q.2 Is Nippon Life India Asset Management Ltd a good quality company?

Nippon Life India Asset Management Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Nippon Life India Asset Management Ltd undervalued or overvalued?

Nippon Life India Asset Management Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	45.02	31.81
Price to Book	14.78	9.46
Price to Sales	25.42	21.72
EV to EBITDA	33.95	26.25

Q.4 Is Nippon Life India Asset Management Ltd a good buy now?

Nippon Life India Asset Management Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd revenue growth is 35.8% for FY-2025, which is above its 5-year CAGR of 13.15%, indicating faster growth.

Q.2 Gross Profit margin of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Gross profit margin which is the profit after deduction of direct costs, is 77.3% for FY-2025, which is in line with its 5-year median of 77.8%, indicating stable margins.

Q.3 Operating Profit Margin of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 64.61% for FY-2025, which is above its 5-year median of 60.46% indicating increasing margins.

Q.4 Net Profit Margin of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Net Profit Margin is 57.64% for FY-2025, is in line with its 5-year median of 57.64%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	77.3	77.8
Operating Profit Margin (%)	64.61	60.46
Net Profit Margin (%)	57.64	57.64

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Return on Asset is 28.4%, which is above its 5-year historical median of 21.7%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Return on capital employed is 41.5% for FY-2025, which is above its 5-year historical median of 31%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Return on equity is 32.3% for FY-2025, which is above its 5-year historical median of 24.5%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Cash conversion cycle is -16 days, above its 5-year historical median of -27 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.49	0.36
ROE (%)	32.3	24.5
ROCE (%)	41.5	31
Cash Conversion Cycle	-16 days	-27 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of Nippon Life India Asset Management Ltd?

Nippon Life India Asset Management Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Nippon Life India Asset Management Ltd?

Q.1 Promoter shareholding and pledge status of Nippon Life India Asset Management Ltd?

Promoters hold 71.93% of the Nippon Life India Asset Management Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Nippon Life India Asset Management Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Nippon Life India Asset Management Ltd vs industry peers?

Nippon Life India Asset Management Ltd revenue CAGR is 13.15%, compared to the industry median CAGR of 13.15%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	35.8	13.2
Gross Profit Growth (%)	24.8	23.8
Operating Profit Growth (%)	45.1	22.9
Net Profit Growth (%)	16.3	25.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.49	0.36
ROE (%)	32.3	24.5
ROCE (%)	41.5	31
Cash Conversion Cycle (days)	-16.07	-27

Valuation & price assessment

Q.1 Stock return of Nippon Life India Asset Management Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 24.98% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	25%	65.2%	48.5%

Q.2 Valuation ratios of Nippon Life India Asset Management Ltd vs historical?

The current P/E ratio of 45.02 is higher than its historical median of 31.81, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	45.02	31.81	33.16
Price to Book	14.78	9.46	5.67
Price to Sales	25.42	21.72	22.04
EV to EBITDA	33.95	26.25	22.96

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Check Before You Invest : Nippon Life India Asset Management Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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