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

• Market Cap: ₹520.93B
• Dividend Yield: 2.17%
• Average Volume (3M): 45.27K
• Price to Earnings (P/E): 38.4
• Beta (1Y): 1.26
• Revenue Growth: 19.78%
• EPS Growth: 11.11%
• Country: IN
• Employees: 1,004
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 6.20
• Shares Outstanding: 636,061,950
• 10 Day Avg. Volume: 36,065
• 30 Day Avg. Volume: 45,266
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹813.33
• Price Target Upside: -1.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: ₹900.00 ▲(8.69% Upside)

Nippon Life India Asset Management Ltd. scores well due to its strong financial performance, characterized by robust revenue and profit growth and effective cash flow management. However, technical analysis indicates potential short-term weakness, and the stock's valuation appears relatively high. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, positioning the company for continued expansion.

Profit Margins

High profit margins reflect operational efficiency and pricing power, enhancing the company's ability to generate substantial profits.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility to invest in growth opportunities.

Negative Factors

Cash Equivalents Decrease

A decrease in cash reserves could limit liquidity, potentially impacting the company's ability to respond to unexpected expenses or investment needs.

Free Cash Flow Decline

A decline in free cash flow may constrain the company's capacity to fund new projects or return capital to shareholders, affecting future growth.

Earnings Quality Concerns

While high, the operating cash flow to net income ratio below 1 suggests potential discrepancies between earnings and cash generation, warranting closer scrutiny.

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

Company Description

Nippon Life India Asset Management Ltd. (NAM INDIA), formerly known as Reliance Nippon Life Asset Management Limited, is one of India's leading asset management companies. It operates in the financial services sector, offering a wide range of investment products including mutual funds, portfolio management services, and alternative investment funds. NAM INDIA leverages its extensive expertise in managing assets to serve institutional and retail clients across the country.

How the Company Makes Money

Nippon Life India Asset Management Ltd. generates revenue primarily through management fees charged on the assets under its management. These fees are typically a percentage of the total assets managed and vary depending on the type and complexity of the investment products offered. The company also earns income through advisory fees and performance-linked incentives associated with portfolio management services. Additionally, NAM INDIA benefits from strategic partnerships, such as its association with Nippon Life Insurance, which enhances its market reach and credibility. The company's earnings are influenced by factors such as market performance, investor sentiment, and regulatory changes impacting the financial services industry.

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	23.85B	25.21B	20.37B	13.50B	15.36B	14.19B
Gross Profit	19.96B	20.92B	16.97B	12.12B	12.44B	11.45B
EBITDA	17.29B	17.32B	13.88B	9.62B	10.20B	9.15B
Net Income	12.86B	12.86B	11.07B	7.23B	7.44B	6.80B
Balance Sheet
Total Assets	46.70B	46.70B	43.75B	38.61B	37.97B	33.92B
Cash, Cash Equivalents and Short-Term Investments	2.88B	2.88B	30.44B	2.73B	28.58B	3.60B
Total Debt	880.30M	880.30M	785.90M	560.00M	471.70M	514.70M
Total Liabilities	4.57B	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: Positive
• Last Price: 828.05
• 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 Positive. The current price of 828.05 is above the 20-day moving average (MA) of 820.34, above the 50-day MA of 817.72, and above the 200-day MA of 692.61, indicating a neutral trend. The MACD of -1.32 indicates Positive momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 70.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MOTILALOFS	76 Outperform	₹548.74B	19.67		0.55%	11.16%	-1.15%
HDFCAMC	75 Outperform	₹1.24T	47.59		1.55%	27.61%	25.70%
UTIAMC	75 Outperform	₹173.06B	23.97		1.93%	3.62%	-9.49%
ABSLAMC	73 Outperform	₹246.75B	25.36		2.83%	19.42%	16.76%
BIRLAMONEY	73 Outperform	₹10.40B	14.01		―	4.68%	22.23%
NAM.INDIA	73 Outperform	₹520.93B	38.45		2.17%	19.78%	11.11%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%