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Centrum Broking likes Nippon Life given its pan-India distribution network and focus on sourcing granular retail AUM from B-30 (beyond top 30) cities.
The stock is trading at 23 times FY20 estimated price-to- earnings
While a rightful discount to HDFC AMC is justified, RNAM is trading at a discount to IIFL wealth, which is unwarranted.
Expect the flows into equities and debt funds to continue as other assets are not so attractive, said Sundeep Sikka, ED & CEO, Reliance Nippon Life AMC.
The focus has been on profitable growth and the first half of FY18 has seen good earnings growth, said Sundeep Sikka, ED & CEO, Reliance Nippon Life AMC.