HomeNewsBusinessStocksBuy Nippon India Life Asset Management: target of Rs 502: Sharekhan

Buy Nippon India Life Asset Management: target of Rs 502: Sharekhan

Sharekhan is bullish on Nippon India Life Asset Management has recommended buy rating on the stock with a target price of Rs 502 in its research report dated December 16, 2021.

December 17, 2021 / 13:39 IST
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Sharekhan's research report on Nippon India Life Asset Management

Nippon Life Asset Management’s (NAM’s) management stated that business has progressed well, operating efficiencies are improving and it has regained market share. It termed its journey as ‘regaining, reinventing and recreating’ since it was renamed Nippon Life Asset Management in 2019. NAM undertook several initiatives to boost profitability. With a focus on the retail segment which is important in terms of stickiness and profitability, the company saw its folio share rise to 13% in September 2021 from 10.2% in September 2020. It intends to have retail AUM mix of 40-45% going ahead. NAM continues to invest in technology and intends to scale up its business with laying more emphasis on profitability and avoid low yielding business.

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Outlook

We re-iterate a Buy rating on NAM India with price target (PT) of Rs. 502.