Accumulate Nippon Life India Asset Management; target of Rs 661: Religare Retail Research

Religare Retail Research report on Nippon Life India Asset Management

NAM-India witnessed Q4FY24 quarter as the revenue from operations was Rs 432cr, up by 10.1% QoQ/32.8% YoY. The growth in top-line was mainly led the strong increase in AuM while margins saw slight moderation. EBITDA increased by 12.1% QoQ/38.1% YoY to Rs 285cr along with margin expansion of 122bps QoQ/257bps YoY as the company managed to maintain its operating costs. Subsequentially, PAT increased by 22.8% QoQ/63.3% YoY to Rs 325cr which is one of the strong quarters for the company.

Outlook

We continue to maintain Accumulate rating on the company with an upward revision in the target price of Rs 661, valuing the company at 25x of its FY26E EPS.