Buy Nippon Life India Asset Management; target of Rs 750: Sharekhan

Sharekhan's research report on Nippon Life India Asset Management

Core revenues grew 43% y-o-y/ 8% q-o-q driven by strong growth in QAAUM (up 54% y-o-y/ 12% q-o-q) partly offset by lower yields. Blended revenue yields were at 42 bps versus 45 bps y-o-y.Core PBT grew by 60% y-o-y/ 9% q-o-q. Overall market share rose by 24 bps q-o-q in QAAUM to 8.2%. Equity market share (ex-ETFs) also rose 12 bps q-o-q to 6.86%. SIP flows rose by 7.5% q-o-q and market share improved to ~11% vs ~8% y-o-y.

Outlook

We maintain a Buy with a revised PT of Rs. 750. At CMP, the stock trades at 30.8x/ 27.6x its FY2025E / FY2026E EPS.