Nippon Life India Asset Management Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 25066.59 Crore) operating in Financial Services sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 361.96 Crore, down -9.25 % from last quarter Total Income of Rs 398.84 Crore and up 142.02 % from last year same quarter Total Income of Rs 149.56 Crore. Company reported net profit after tax of Rs 166.51 Crore in latest quarter.
Investment Rationale
The brokerage has cut estimates by 6% for FY22E and FY23E each to factor in lower than expected yields during the quarter. However, they are enthused by the market share gains the company has seen in the past quarter and also by significant folio additions indicating regaining of brand strength in the lower tier markets. It expects a 17% PAT and 32% core PAT CAGR over FY21-24E, for which it finds the valuations of FY23E P/E of 28.4x attractive. It retains BUY recommendation with a 1-year price target of Rs 511 (Rs452 earlier) based on 32x average FY23E and FY24E earnings (30x FY23E earnings earlier).
Promoter/FII Holdings
Promoters held 45 per cent stake in the company as of June 30, 2020, while FIIs held 22.3 per cent, DIIs 17.2 per cent and public and others 10.5 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
