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 10-year financial track record.

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 above with their past averages.

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

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 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.3 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.4 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.5 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	0.49	0.36
ROE	32.3	24.5
ROCE	41.5	31
Cash Conversion Cycle	-16 days	-27 days

Q.6 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.7 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.8 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 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

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 above with the industry average of , indicating higher 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

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)

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 slower growth and losing 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	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 24.95% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	25%	63.6%	63.5%

Q.3 Valuation ratios of Nippon Life India Asset Management Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	42.21	31.64	33.19
Price to Book	13.86	9.21	5.67
Price to Sales	23.83	21.75	22.04
EV to EBITDA	31.82	26.00	23.11

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