Nippon Life India Asset Management Ltd Stock Analysis

BSE: 540767 | NSE: NAM-INDIA | Finance - Asset Management | Mid Cap

BSE Share Price Aug 10, 12:40
308.15 3.50 (1.15%)

DeciZen - Make an Informed Decision on Nippon Life India As

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Nippon Life India As Price Chart

P/E Ratio (CD) :
28.10
Market Cap :
18,965.5 Cr.
52-wk low :
259.3
52-wk high :
476.5
Bole Toh?

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

Past 10 year's financial track record analysis by Moneyworks4me indicates that Nippon Life India Asset Management Ltd is a good quality company.

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

The key valuation ratios of Nippon Life India Asset Management Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

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

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Nippon Life India Asset Management Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Nippon Life India As:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Nippon Life India Asset Management Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 16%18.3%22.9%23.9%21.7%21.3%19.4%18.6%24%22.7%-
Value Creation Index 0.40.61.01.10.90.60.40.71.1NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6096768471,2001,3081,5921,4791,2031,0621,3071,320
YoY Gr. Rt. %-11%25.4%41.7%9%21.7%-7.1%-18.6%-11.7%23%-
Adj EPS 206.9244.9315.6346.5346.57.57.97.8111210.9
YoY Gr. Rt. %-18.4%28.9%9.8%-0%-97.9%6.4%-2.1%42.1%8.3%-
BVPS (₹) 1,293.31,3791,336.31,529.41,599.538.641.841.348.854.155.9
Adj Net Profit 233276356399399456486475681744677
Cash Flow from Ops. 48177-42.1218556376386605456580-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.9%-0%-4%23%
Adj EPS -27.2%-49%14.6%8.3%
BVPS -29.7-49.2910.9
Share Price - - 9.9% -20.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 1618.3232421.821.519.718.423.922.619.8
Op. Profit Mgn % 29.636.842.134.735.732.136.449.852.560.560
Net Profit Mgn % 38.340.84233.330.528.832.939.66456.951.3
Debt to Equity 0000000000-
Working Cap Days 052039927524219119113566560
Cash Conv. Cycle 0-77-99-40-44-54-32-22-39-350

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 14.63%

Sales growth is good in last 4 quarters at 17.35%

Return on Equity has declined versus last 3 years average to 19.80%

Sales growth has been subdued in last 3 years -4.04%

Latest Financials - Nippon Life India Asset Management Ltd.

Standalone Consolidated
TTM EPS (₹) 10.6 10.9
TTM Sales (₹ Cr.) 1,228 1,320
BVPS (₹.) 54.3 55.9
Reserves (₹ Cr.) 2,756 2,859
P/BV 5.61 5.46
PE 28.70 28.10
From the Market
52 Week Low / High (₹) 259.30 / 476.50
All Time Low / High (₹) 120.20 / 476.50
Market Cap (₹ Cr.) 18,966
Equity (₹ Cr.) 622.5
Face Value (₹) 10
Industry PE 27.5

Management X-Ray of Nippon Life India As :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Nippon Life India As

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Nippon Life India Asset Management Ltd

Nippon Life India Asset Management Limited (NAM India) is the asset manager of Nippon India Mutual Fund (NIMF). The name of the company was changed from 'Reliance Nippon Life Asset Management Limited' to ‘Nippon Life India Asset Management Limited’ and a fresh certificate of incorporation was issued by the Registrar of Companies, Mumbai on January 13, 2020. Equity Shares of NAM India are listed on BSE Limited and National Stock Exchange of India Limited. Nippon Life India Asset Management Limited (NAM India) is a listed public limited company incorporated under the Companies Act, 1956 on February 24, 1995.

Nippon Life Insurance Company (NLI) is a Japan’s leading private life insurer and offers a wide range of financial products, including individual and group life and annuity policies through various distribution channels, mainly using face-to-face sales channels for its traditional insurance products. It primarily operates in Japan, North America, Europe, Oceania and Asia. NLI conducts asset management operations in Asia, through its subsidiary Nissay Asset Management Corporation (Nissay), which manages assets globally.

Business area of the company

Nippon Life India Asset Management’s principal activity is to act as an investment manager to Nippon India Mutual Fund (Formerly Reliance Mutual Fund) (the Fund) and to provide Portfolio Management Services (PMS) and advisory services to clients under Securities and Exchange Board of India (SEBI) Regulations. The Company is registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996.

Products of the company

  • Nippon India Any Time Money Card
  • Nippon India Salary Addvantage
  • Nippon India SIP Insure
  • Nippon India Smart STeP
  • Simply Save

Awards

  • ET BFSI Excellence Awards 2019 - Best Customer Engagement of the Year for Conversational Commerce.
  • Featured as a global case study in the Google Cloud Summit as a prominent partner on its Conversational Commerce.
  • BFSI Smart Tech Leadership Awards - Best Use of Emerging or Innovative Technology for Conversational Commerce.
  • BFSI Smart Tech Leadership Awards - Outstanding use of AI & Robotics in Financial Services for Business Easy 2.0.
  • Indian Digital Media Awards 2019 - Best Customer Engagement of the Year for Conversational Commerce.
  • Kamikaze B2B Media - Best Payment technology initiative of the Year for Conversational Commerce.

Major events and milestones

  • 1995: Received the approval to act as the asset management company to the Reliance Mutual Fund, then known as Reliance Capital Mutual Fund.
  • 1995: Reliance Growth Fund and Reliance Vision Fund schemes launched by the Reliance Mutual Fund, with the company acting as the asset management company.
  • 2004: Commenced portfolio management services.
  • 2004: Commenced offshore operations in Mauritius by setting up a wholly owned subsidiary, Reliance Asset Management (Mauritius) Limited.
  • 2005: Commenced offshore operations in Singapore by setting up a wholly owned subsidiary, Reliance Asset Management (Singapore) Pte Limited.
  • 2008: Executed a contract to provide discretionary portfolio management services to the Employees’ Provident Fund Organisation (acting through its Central Board of Trustees).
  • 2012: Received the first tranche of investment from Nippon Life.
  • 2014: The company’s subsidiary, Reliance AIF Management Company Limited, appointed as the ‘manager’ to the Reliance Capital AIF Trust.
  • 2014: Reliance Japan Equity Fund, a Japan focused open-ended diversified equity scheme launched by Reliance Mutual Fund, with the company acting as the asset management company.
  • 2015: Entered into an Investor Advisory Agreement with Samsung Asset Management (Hong Kong) Limited.
  • 2015: Equity-oriented Retirement Fund launched by Reliance Mutual Fund, with the company acting as the asset management company.
  • 2015: QAAUM (Reliance Mutual Fund) crossed Rs 1,500,000 million.
  • 2016: Acquired the asset management rights of 12 schemes being managed by Goldman Sachs Asset Management (India) Private Limited.
  • 2016: Launched the ‘Simply Save’ app and Instant Redemption facility.
  • 2016: Executed a contract to provide discretionary portfolio management services to the Coal Mines Provident Fund Organization (acting through its Board of Trustees).
  • 2016: The company’s subsidiary, Reliance AIF Management Company Limited, appointed as the ‘manager’ to the Reliance Event Opportunities Trust.
  • 2017: QAAUM (Reliance Mutual Fund) crossed Rs 2,000,000 million.
  • 2018: Focused approach on SIPs resulting in 2.5X growth enabling long term assets.
  • 2019: Company inks Strategic Alliances to fortify its Digital Distribution
  • 2019: Nippon Life Insurance (NLI), Japan’s leading private life insurer and its partner since 2012, became the principal shareholder in the company.
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