YES Securities' research report on Nippon Life India AMC
The sharp decline in yield in the month of March was a transient phenomenon related to compliance aspects: These expenses have been resurrected back in the first week of April itself. There has been dip in management fees but not in TER realization. On an overall basis, revenue realization stands at 49 bps vs 52 bps a year ago. Structurally, management averred that most of the “old” assets that had to flow out have done so.
We maintain ‘BUY’ rating on NAM with an unchanged price target of Rs 450: We value NAM at 29.0x FY23 P/E for an FY21-24E EPS CAGR of 20.1%.
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