Nippon Life India Asset Management Ltd Quarterly Results
Month
Dec 2020
Mar 2021
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Sales
268
302
302
328
339
338
316
332
354
348
354
397
423
Expenses
122
136
125
135
126
130
137
138
141
140
152
156
164
Operating Profit
147
166
177
193
212
208
179
194
213
209
202
241
259
OPM %
55%
55%
59%
59%
63%
62%
57%
58%
60%
60%
57%
61%
61%
Other Income
130
60
67
97
30
34
-17
82
62
40
117
78
107
Interest
1
1
1
1
1
1
1
1
1
1
1
2
2
Depreciation
8
7
7
7
6
7
7
7
8
8
8
7
7
Profit before tax
269
218
236
283
235
234
155
268
266
239
310
310
358
Tax %
21%
24%
23%
25%
26%
25%
26%
23%
23%
17%
24%
21%
21%
Net Profit
212
167
182
214
174
175
114
206
205
198
236
244
284
EPS in Rs
3.46
2.71
2.94
3.44
2.80
2.81
1.83
3.31
3.29
3.18
3.78
3.91
4.53
Last Updated: July 10, 2024, 8:11 pm
Quarterly Chart
Nippon Life India Asset Management Ltd Profit & Loss
Last Updated: July 10, 2024, 8:11 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Sales
733
774
951
1,311
1,435
1,735
1,647
1,192
1,419
1,533
1,512
1,643
Expenses
432
434
484
787
837
1,082
940
594
505
516
555
649
Operating Profit
301
340
468
524
598
653
707
598
914
1,017
957
994
OPM %
41%
44%
49%
40%
42%
38%
43%
50%
64%
66%
63%
60%
Other Income
1
4
3
3
1
14
3
1
1
2
5
394
Interest
0
0
0
0
0
2
0
6
4
4
4
6
Depreciation
9
14
7
4
18
9
10
33
33
27
30
29
Profit before tax
293
330
464
522
581
656
700
560
877
989
928
1,352
Tax %
21%
18%
24%
24%
31%
30%
30%
26%
23%
25%
22%
18%
Net Profit
230
271
354
396
402
457
487
415
680
744
723
1,107
EPS in Rs
199.97
234.92
307.69
344.12
348.92
7.45
7.94
6.78
11.04
11.96
11.61
17.58
Dividend Payout %
68%
123%
40%
36%
0%
81%
76%
74%
72%
92%
99%
94%
Profit & Loss Yearly Chart
YoY Net Profit Growth
Year
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
YoY Net Profit Growth (%)
17.83%
30.63%
11.86%
1.52%
13.68%
6.56%
-14.78%
63.86%
9.41%
-2.82%
53.11%
Change in YoY Net Profit Growth (%)
0.00%
12.80%
-18.76%
-10.35%
12.17%
-7.12%
-21.35%
78.64%
-54.44%
-12.23%
55.93%
Nippon Life India Asset Management Ltd Growth
Compounded Sales Growth
10 Years:
10%
5 Years:
4%
3 Years:
13%
TTM:
29%
Compounded Profit Growth
10 Years:
15%
5 Years:
18%
3 Years:
18%
TTM:
42%
Stock Price CAGR
10 Years:
%
5 Years:
23%
3 Years:
18%
1 Year:
105%
Return on Equity
10 Years:
23%
5 Years:
23%
3 Years:
24%
Last Year:
30%
Last Updated: July 26, 2024, 4:48 pm
Nippon Life India Asset Management Ltd Balance Sheet
Last Updated: July 10, 2024, 8:11 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Sep 2023
Equity Capital
11
11
11
12
12
612
612
612
616
622
623
625
Reserves
1,446
1,543
1,495
1,750
1,831
1,753
1,958
1,981
2,484
2,857
2,892
2,942
Preference Capital
0
0
30
30
30
0
0
0
0
0
0
Borrowings
0
0
0
0
0
0
0
0
0
0
0
0
Other Liabilities
104
155
196
169
209
357
206
288
291
318
345
360
Total Liabilities
1,561
1,709
1,702
1,931
2,051
2,722
2,776
2,881
3,392
3,797
3,861
3,927
Fixed Assets
20
14
7
12
251
258
256
324
301
296
305
327
CWIP
0
0
0
0
0
3
1
2
1
0
2
2
Investments
603
741
835
911
947
993
1,290
1,885
2,550
2,942
3,023
3,052
Other Assets
939
954
860
1,008
854
1,469
1,229
671
540
559
530
547
Total Assets
1,561
1,709
1,702
1,931
2,051
2,722
2,776
2,881
3,392
3,797
3,861
3,927
Reserves and Borrowings Chart
Nippon Life India Asset Management Ltd Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
-42
218
556
376
386
605
456
580
587
777
Cash from Investing ActivityÂ
441
-25
-316
-260
-35
37
-402
-125
98
-104
Cash from Financing ActivityÂ
-404
-174
-300
-92
-359
-468
-239
-426
-712
-671
Net Cash Flow
-5
19
-61
24
-7
174
-185
29
-27
3
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
301.00
340.00
438.00
494.00
568.00
653.00
707.00
598.00
914.00
1.00
957.00
994.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
Undervalued: 0.32% compared to the current price ₹687.00
Intrinsic Value: 833.88
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 21.38% compared to the current price ₹687.00
Last 5 Year EPS CAGR: 20.99%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a high average ROCE of 26.67%, which is a positive sign.
The company has higher reserves (2,111.83 cr) compared to borrowings (7.50 cr), indicating strong financial stability.
The company has shown consistent growth in sales (205.58 cr) and profit (575.08 cr) over the years.
The stock has a high average Working Capital Days of 47.92, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 14.42, which may not be favorable.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Nippon Life India Asset Management Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 27.87% (Industry Average ROE: 25.17%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 36.1 (Industry average Stock P/E: 27.4)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Nippon Life India Asset Management Ltd. is a Public Limited Listed company incorporated on 24/02/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65910MH1995PLC220793 and registration number is 220793. Currently Company is involved in the business activities of Fund management activities. Company’s Total Operating Revenue is Rs. 1213.98 Cr. and Equity Capital is Rs. 622.02 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Nippon Life India Asset Management Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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