Nippon Life India Asset Management Ltd. (NAM.INDIA) AI Stock Analysis

• Market Cap: ₹605.45B
• Dividend Yield: 2.07%
• Average Volume (3M): 40.82K
• Price to Earnings (P/E): 42.9
• Beta (1Y): 1.23
• Revenue Growth: 19.78%
• EPS Growth: 11.11%
• Country: IN
• Employees: 1,004
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 636,646,800
• 10 Day Avg. Volume: 44,438
• 30 Day Avg. Volume: 40,821
• PEG Ratio: 1.91
• Price to Book (P/B): 8.68
• Price to Sales (P/S): 14.50
• P/FCF Ratio: 55.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹920.00
• Price Target Upside: 7.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ₹1,093.00 ▲(27.29% Upside)

The overall stock score is driven by strong financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score.

Nippon Life India Asset Management Ltd. Business Overview & Revenue Model

Company Description

Nippon Life Asset Management Limited is a publicly owned investment manager. The firm launches and manages equity and fixed income mutual funds for its clients. It also manages exchange traded funds for its clients. The firm invests in the public equity, fixed income and commodity markets. Nippon Life Asset Management Limited was previously known as Reliance Nippon Life Asset Management Limited. Nippon Life Asset Management Limited was founded on February 24, 1995 and is based in Mumbai, India.

How the Company Makes Money

NAM.INDIA generates revenue primarily through management fees charged on the assets under management (AUM) across its mutual fund schemes. These fees are typically calculated as a percentage of the AUM and vary based on the type of fund and its performance. Additionally, the company earns income from advisory services and portfolio management, which also contribute to its revenue streams. Significant partnerships with financial institutions and distributors enhance its market reach and client base, further supporting its earnings. Furthermore, investment performance plays a crucial role in attracting new investors and retaining existing ones, impacting the overall AUM and, consequently, the company's revenue.

Nippon Life India Asset Management Ltd. Financial Statement Overview

Summary

Nippon Life India Asset Management Ltd. demonstrates strong financial health with robust revenue and profit growth, high profit margins, low financial leverage, and effective cash flow management. The company is well-positioned for future growth opportunities.

Income Statement

Nippon Life India Asset Management Ltd. has demonstrated strong revenue growth with a consistent upward trajectory, particularly in the latest period where total revenue rose by 23.7% from the previous year. The company maintains healthy profit margins, with a gross profit margin of 82.9% and a net profit margin of 51.0%. The EBIT and EBITDA margins are also robust at 80.1% and 68.7%, respectively, indicating strong operational efficiency and profitability.

Balance Sheet

The company has a strong equity base, with a low debt-to-equity ratio of 0.02, reflecting low financial leverage. The equity ratio stands at 90.2%, showcasing a solid financial foundation. Return on equity (ROE) is impressive at 30.5%, indicating effective management of shareholder funds. The balance sheet is strong, although a slight decrease in cash equivalents is noted.

Cash Flow

Cash flow generation is robust, with operating cash flow increasing by 54.2% year-over-year. Free cash flow is positive and growing, although it decreased slightly compared to the previous period. The operating cash flow to net income ratio is 0.93, indicating high earnings quality. Overall, cash flow management is strong and supportive of ongoing operations and potential investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.55B	25.21B	20.37B	15.17B	15.36B	14.19B
Gross Profit	18.52B	20.92B	16.97B	12.12B	12.44B	13.43B
EBITDA	18.18B	17.32B	13.88B	9.62B	10.20B	9.15B
Net Income	13.50B	12.86B	11.07B	7.23B	7.44B	6.80B
Balance Sheet
Total Assets	0.00	46.70B	43.75B	38.61B	37.97B	33.92B
Cash, Cash Equivalents and Short-Term Investments	34.63B	26.52B	30.44B	2.73B	28.58B	3.60B
Total Debt	0.00	880.30M	785.90M	560.00M	471.70M	514.70M
Total Liabilities	-42.13B	4.57B	3.93B	3.46B	3.18B	2.92B
Stockholders Equity	42.13B	42.13B	39.82B	35.15B	34.79B	31.00B
Cash Flow
Free Cash Flow	0.00	6.59B	7.66B	5.74B	5.73B	4.36B
Operating Cash Flow	0.00	12.00B	7.77B	5.84B	5.80B	4.56B
Investing Cash Flow	0.00	-815.90M	-1.04B	1.01B	-1.25B	-4.02B
Financing Cash Flow	0.00	-11.16B	-6.71B	-7.12B	-4.26B	-2.39B

Nippon Life India Asset Management Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 858.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NAM.INDIA, the sentiment is Neutral. The current price of 858.65 is below the 20-day moving average (MA) of 895.04, above the 50-day MA of 857.56, and above the 200-day MA of 717.79, indicating a neutral trend. The MACD of 12.30 indicates Positive momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NAM.INDIA.

Nippon Life India Asset Management Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAM.INDIA	―	₹605.45B	42.93	―	2.07%	19.78%	11.11%
ABSLAMC	―	₹248.71B	25.57	―	3.07%	10.40%	8.23%
MOTILALOFS	―	₹615.73B	21.70	―	0.50%	11.16%	-1.15%
BIRLAMONEY	―	₹9.07B	16.01	―	―	-6.37%	-24.10%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UTIAMC	―	₹171.71B	30.52	―	2.04%	-9.65%	-30.52%
HDFCAMC	―	₹1.22T	44.45	―	1.67%	19.21%	24.12%