Nippon Life India Asset Management Ltd - Stock Valuation and Financial Performance

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

Nippon Life India As Share Price

469.30 2.75 0.59%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Nippon Life India As

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Nippon Life India Asset Management stock performance -

mw4me loader
P/E Ratio (CD):
30.54
Market Cap:
29,392.6 Cr.
52-wk low:
197.1
52-wk high:
542.6

Is Nippon Life India Asset Management Ltd an attractive stock to invest in?

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 Somewhat overvalued zone.

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

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Nippon Life India Asset Management Ltd is likely to Rise-somewhat 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 18.3%22.9%23.9%21.7%21.3%19.4%18.6%24%22.7%20.8%-
Value Creation
Index
0.61.01.10.90.60.40.71.10.70.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6768471,2001,3081,5921,4791,2031,0621,3071,3501,523
Sales YoY Gr.-25.4%41.7%9%21.7%-7.1%-18.6%-11.7%23%3.3%-
Adj EPS 244.9315.6346.5346.57.57.97.81111.911.615.3
YoY Gr.-28.9%9.8%-0%-97.9%6.4%-2.1%42.1%8.2%-2.8%-
BVPS (₹) 1,3791,336.31,529.41,599.538.641.841.348.854.154.461.2
Adj Net
Profit
276356399399456486475681744724963
Cash Flow from Ops. 177-42.1218556376386605456580584-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8%-3.2%3.9%3.3%
Adj EPS -28.7%9.3%14.3%-2.8%
BVPS-30.2%7.1%9.6%0.5%
Share Price - 18.3% 12.4% 133.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
18.3232421.821.519.718.423.922.620.726.4
Op. Profit
Mgn %
36.842.134.735.732.136.449.852.560.558.959.9
Net Profit
Mgn %
40.84233.330.528.832.939.66456.953.663.2
Debt to
Equity
0000000000-
Working Cap
Days
520399275242191191135665665418
Cash Conv.
Cycle
-77-99-40-44-54-32-22-39-35-28395

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 26.40%

Net Profit is growing at healthy rate in last 3 years 14.32%

Sales growth is good in last 4 quarters at 13.66%

Sales growth has been subdued in last 3 years 3.91%

Latest Financials - Nippon Life India Asset Management Ltd.

Standalone Consolidated
TTM EPS (₹) 14.6 15.3
TTM Sales (₹ Cr.) 1,415 1,523
BVPS (₹.) 58.9 61.2
Reserves (₹ Cr.) 3,080 3,225
P/BV 7.92 7.63
PE 31.91 30.54
From the Market
52 Week Low / High (₹) 197.10 / 542.55
All Time Low / High (₹) 120.20 / 542.55
Market Cap (₹ Cr.) 29,393
Equity (₹ Cr.) 630
Face Value (₹) 10
Industry PE 33.9

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

Key Ratios of Nippon Life India As

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income7799631,3141,4401,7491,6511,2891,4191,5361,517
Interest Income6768471,2001,3081,5921,4791,2031,0621,3071,350
Other Income 10311611413315717286357230168
Expenditure 4494997918591,093951729542547590
Interest Expense 0000206444
Operating Expenses 4374877708401,076927622521528569
Provisions 121221191523102171617
Exceptional Items 0000000000
Profit Before Tax 330464522581656700560877989928
Taxes 59109126179198213144198245205
Profit After Tax 271354396402457487416679743723
Adjusted EPS (₹)4.76.26.76.87.57.96.811.012.011.6
Dividend Payout Ratio (%)62%48%63%62%81%76%74%72%92%99%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital1,5541,5361,7921,8732,3652,5702,5933,1003,4783,515
Share Capital 11414242612612612617622623
Reserves 1,5431,4951,7501,8311,7531,9581,9812,4842,8562,892
Minority Interest49906500000
Long Term Borrowings-9-4-181940355490105
Current Liabilities 234252122167272166252237228240
Trade Payables7693651081334768635666
Short term borrowings0000000000
Other Liabilities-76-93-65-108-133-47-68-62-55-66
Total Liabilities 1,7831,7931,9222,0482,7222,7762,8803,3923,7973,861

Assets

Non Current Asset 4307179259971,3081,5792,2392,8973,2863,364
Loan Asset 0000000000
Other Non Current Asset 4307179259971,3081,5792,2392,8973,2863,364
Current Asset 1,3531,0769971,0511,4141,197641495511497
Current Investment4534323843578500000
Other Current Asset9016446146941,3291,197641495511497
Total Assets 1,7831,7931,9222,0482,7222,7762,8803,3923,7973,861

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 177-42218556376386605456580584
Cash Flow From Investing Activity 14445-28-315-260-3537-402-125101
Cash Flow From Financing Activity -189-404-174-300-92-359-468-239-426-712
Net Cash Flow 3-116-5924-7174-18529-27
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)240315344349787111212
DPS (₹)15015021521566581112
BVPS (₹)1379133615291599394241495454

Performance Ratios

ROA (%)15.819.821.320.319.217.714.721.720.718.9
ROE (%)18.023.224.322.321.719.816.424.523.321.4
ROCE (%)21.930.031.431.731.028.421.931.030.226.6

Valuation Parameters

Price/Book(x)0.00.00.00.06.45.06.06.96.43.9

Nippon Life India Asset Management Ltd Stock News

Nippon Life India Asset Management Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Nippon Life India As on 28-Mar-2024 16:01 is ₹469.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Nippon Life India As stood at ₹29,392.6.
The latest P/E ratio of Nippon Life India As as of 28-Mar-2024 16:01 is 31.91.
The latest P/B ratio of Nippon Life India As as of 28-Mar-2024 16:01 is 7.92.
The 52-week high of Nippon Life India As is ₹542.5 and the 52-week low is ₹197.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Nippon Life India As is ₹1,415 ( Cr.) .

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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