Buy Nippon AMC; target of Rs 1040: Motilal Oswal

Motilal Oswal is bullish on Nippon AMC recommended buy rating on the stock with a target price of Rs 1040 in its research report dated March 06, 2026.

Broker Research

March 09, 2026 / 11:57 IST

Buy

Motilal Oswal's research report on Nippon AMC

NAM continues to deliver industry-leading market share gains, with MF QAAUM of INR7t (+23% YoY) and overall share at a five-year high of 8.7%. It is underpinned by steady net inflows, robust SIP momentum, and a favorable equity mix (47% in Dec’25), driving the highest FY26YTD equity share accretion in the industry to 7.1% (+11bp YoY). NAM reported stable blended yields of 37bp in 3Q (equity: 53bp) despite rising passive contribution, supported by a healthy equity mix and traction in high-yielding commodity ETFs. Management continues to guide for an annual compression of 1- 2bp due to telescopic pricing, to be offset by diversified retail flows, SIP growth, and product innovation. The company has the largest retail investor base of 22.7m in the industry (38.4% share), underpinned by a highly granular SIP book of INR1.7t, exhibiting materially higher stickiness than industry averages (49% vs. industry at 31% over five years). Its ETF platform, with INR2.1t AUM (+39% YoY/+14% QoQ in 3Q, led by strong growth in Gold/Silver ETFs) and ~20% market share, anchors passive leadership, supported by dominant folio share (48%) and exchange trading liquidity (51% volume share).

Outlook

We expect a CAGR of 16%/17%/18% in revenue/EBITDA/core PAT over FY26-28E. We reiterate a BUY rating on the stock with a TP of INR1,040, premised on 38x core FY28E earnings.

For all recommendations report, click here