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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Nippon Life India Asset Management Ltd

About the Company - Nippon Life India Asset Management Ltd

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.
INDUSTRYADDRESSCONTACT
Finance - Mutual Funds4th Floor, Tower A, Mumbai Maharashtra 400013investorrelation@nipponindiaim.com
https://mf.nipponindiaim.com
Management
NamePosition Held
Mr. Upendra Kumar SinhaChairman & Ind.Director
Mr. Sundeep SikkaExecutive Director & CEO
Mr. Hiroki YamauchiNon Exe.Non Ind.Director
Maj.Gen.(Retd.) Ved Prakash MalikIndependent Director
Mr. Ashvin ParekhIndependent Director
Mr. B SriramIndependent Director
Ms. Ameeta ChatterjeeIndependent Director
Mr. Minoru KimuraNon Exe. & Nominee Director
Mr. Tomohiro YaoNon Exe. & Nominee Director

Basic Stock Data of Nippon Life India Asset Management Ltd

Last Updated: June 17, 2024, 8:21 pm

Market Cap 40,811 Cr.
Current Price 646
High / Low658/245
Stock P/E36.9
Book Value 63.2
Dividend Yield2.55 %
ROCE36.2 %
ROE29.5 %
Face Value 10.0
PEG Ratio1.76

Competitors of Nippon Life India Asset Management Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
UTI Asset Management Company Ltd 12,796 Cr. 1,0051,010/67816.7 3452.19 %22.6 %18.6 % 10.0
HDFC Asset Management Company Ltd 84,756 Cr. 3,9694,187/1,99543.6 3321.76 %37.7 %29.5 % 5.00
Aditya Birla Sun Life AMC Ltd 18,876 Cr. 655715/36324.2 1101.56 %34.9 %27.4 % 5.00
Industry Average38,809.33 Cr1,876.3328.17262.331.84%31.73%25.17%6.67

Nippon Life India Asset Management Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales268302302328339338316332354348354397423
Expenses122136125135126130137138141140152156164
Operating Profit147166177193212208179194213209202241259
OPM %55%55%59%59%63%62%57%58%60%60%57%61%61%
Other Income1306067973034-1782624011778107
Interest1111111111122
Depreciation8777677788877
Profit before tax269218236283235234155268266239310310358
Tax %21%24%23%25%26%25%26%23%23%17%24%21%21%
Net Profit212167182214174175114206205198236244284
EPS in Rs3.462.712.943.442.802.811.833.313.293.183.783.914.53

Last Updated: April 10, 2024, 4:20 am

Nippon Life India Asset Management Ltd Quarterly Chart

Nippon Life India Asset Management Ltd Profit & Loss

Last Updated: May 27, 2024, 5:51 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales7337749511,3111,4351,7351,6471,1921,4191,5331,5121,643
Expenses4324344847878371,082940594505516555649
Operating Profit3013404685245986537075989141,017957994
OPM %41%44%49%40%42%38%43%50%64%66%63%60%
Other Income143311431125394
Interest000002064446
Depreciation91474189103333273029
Profit before tax2933304645225816567005608779899281,352
Tax %21%18%24%24%31%30%30%26%23%25%22%18%
Net Profit2302713543964024574874156807447231,107
EPS in Rs199.97234.92307.69344.12348.927.457.946.7811.0411.9611.6117.58
Dividend Payout %68%123%40%36%0%81%76%74%72%92%99%94%

Nippon Life India Asset Management Ltd Profit & Loss Yearly Chart

Nippon Life India Asset Management Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:0%
3 Years:5%
TTM:9%
Compounded Profit Growth
10 Years:15%
5 Years:18%
3 Years:18%
TTM:53%
Stock Price CAGR
10 Years:%
5 Years:24%
3 Years:22%
1 Year:163%
Return on Equity
10 Years:23%
5 Years:23%
3 Years:24%
Last Year:30%

Last Updated: June 17, 2024, 9:38 pm

Nippon Life India Asset Management Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1111111212612612612616622623625
Reserves1,4461,5431,4951,7501,8311,7531,9581,9812,4842,8572,8922,942
Preference Capital00303030000000
Borrowings000000000000
Other Liabilities104155196169209357206288291318345360
Total Liabilities1,5611,7091,7021,9312,0512,7222,7762,8813,3923,7973,8613,927
Fixed Assets2014712251258256324301296305327
CWIP000003121022
Investments6037418359119479931,2901,8852,5502,9423,0233,052
Other Assets9399548601,0088541,4691,229671540559530547
Total Assets1,5611,7091,7021,9312,0512,7222,7762,8813,3923,7973,8613,927

Nippon Life India Asset Management Ltd Reserves and Borrowings Chart

Nippon Life India Asset Management Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -42218556376386605456580584
Cash from Investing Activity 441-25-316-260-3537-402-125101
Cash from Financing Activity -404-174-300-92-359-468-239-426-712
Net Cash Flow-519-6124-7174-18529-27

Nippon Life India Asset Management Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days85717118231812182329
Inventory Days
Days Payable
Cash Conversion Cycle85717118231812182329
Working Capital Days-3284127115124-3625-25-19-5-4-15
ROCE %22%30%31%32%31%28%22%31%30%27%

Nippon Life India Asset Management Ltd Financial Efficiency Indicators Chart

Nippon Life India Asset Management Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.46%74.23%73.97%73.82%73.80%73.74%73.68%73.66%73.66%73.64%73.47%73.10%
FIIs5.92%6.21%6.60%7.16%6.69%6.52%6.37%5.77%4.95%4.84%5.06%5.54%
DIIs6.70%7.46%8.81%8.37%8.83%9.24%9.12%9.06%9.41%10.24%14.57%14.18%
Public12.92%12.10%10.63%10.65%10.68%10.50%10.82%11.52%11.97%11.28%6.92%7.18%
No. of Shareholders1,67,5431,63,9331,60,8401,69,2621,69,2181,73,1201,76,5191,84,2851,88,7221,89,0771,71,9681,80,854

Nippon Life India Asset Management Ltd Shareholding Pattern Chart

No. of Nippon Life India Asset Management Ltd Shareholders

Nippon Life India Asset Management Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan9,680,0930.78404.771,832,7902024-06-16428.16%
Tata Small Cap Fund2,911,6901.92121.751,832,7902024-06-1658.87%
UTI Value Fund1,900,000179.451,832,7902024-06-163.67%
SBI Banking & Financial Services Fund1,832,7901.7276.641,832,7902024-06-160%
ICICI Prudential Multicap Fund1,228,4970.5451.371,832,7902024-06-16-32.97%
HDFC Retirement Savings Fund - Equity - Regular Plan1,221,5701.2751.081,832,7902024-06-16-33.35%
Mirae Asset Great Consumer Fund1,200,0001.7350.181,832,7902024-06-16-34.53%
Tata Focused Equity Fund1,077,0463.0545.041,832,7902024-06-16-41.23%
ICICI Prudential Business Cycle Fund1,003,6980.5941.971,832,7902024-06-16-45.24%
UTI Aggressive Hybrid Fund820,5820.6934.311,832,7902024-06-16-55.23%

Nippon Life India Asset Management Ltd ROCE Trend

Nippon Life India Asset Management Ltd EPS Trend

Nippon Life India Asset Management Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)17.7111.6112.0011.046.78
Diluted EPS (Rs.)17.5311.5311.8010.906.69
Cash EPS (Rs.)18.0212.0812.3911.567.34
Book Value[Excl.RevalReserv]/Share (Rs.)63.2156.4155.9150.2942.36
Book Value[Incl.RevalReserv]/Share (Rs.)63.2156.4155.9150.2942.36
Revenue From Operations / Share (Rs.)26.0821.6621.0117.2319.65
PBDIT / Share (Rs.)22.0315.4316.3914.849.78
PBIT / Share (Rs.)21.5714.9515.9614.309.24
PBT / Share (Rs.)21.4714.8915.8914.239.14
Net Profit / Share (Rs.)17.5611.6011.9511.026.79
NP After MI And SOA / Share (Rs.)17.5811.6111.9611.046.78
PBDIT Margin (%)84.4571.2378.0486.1249.77
PBIT Margin (%)82.6869.0275.9582.9847.00
PBT Margin (%)82.3068.7375.6682.5746.53
Net Profit Margin (%)67.3253.5556.8963.9634.56
NP After MI And SOA Margin (%)67.3853.5856.9564.0534.51
Return on Networth / Equity (%)27.8020.5721.3921.9416.01
Return on Capital Employeed (%)32.7525.3727.4327.4621.14
Return On Assets (%)25.3018.7319.6020.0514.41
Asset Turnover Ratio (%)0.390.330.340.310.40
Current Ratio (X)17.3218.0118.9316.3211.81
Quick Ratio (X)17.3218.0118.9316.3211.81
Dividend Payout Ratio (NP) (%)0.0099.0070.7227.0388.43
Dividend Payout Ratio (CP) (%)0.0095.0868.2225.7781.87
Earning Retention Ratio (%)0.001.0029.2872.9711.57
Cash Earning Retention Ratio (%)0.004.9231.7874.2318.13
Interest Coverage Ratio (X)222.41242.19266.94206.48105.60
Interest Coverage Ratio (Post Tax) (X)178.28183.10195.60154.3674.33
Enterprise Value (Cr.)29358.3512807.8121326.5320483.2614765.96
EV / Net Operating Revenue (X)17.879.4916.3219.2812.27
EV / EBITDA (X)21.1513.3220.9122.3924.66
MarketCap / Net Operating Revenue (X)18.039.6916.5819.6212.66
Retention Ratios (%)0.000.9929.2772.9611.56
Price / BV (X)7.443.726.236.725.87
Price / Net Operating Revenue (X)18.039.6916.5819.6312.66
EarningsYield0.030.050.030.030.02

Nippon Life India Asset Management Ltd Profitability Ratios (%)

Nippon Life India Asset Management Ltd Liquidity Ratios

Nippon Life India Asset Management Ltd Liquidity Ratios (%)

Nippon Life India Asset Management Ltd Interest Coverage Ratios (%)

Nippon Life India Asset Management Ltd Valuation Ratios

Fair Value

Fair Value: 705.51

Calculation basis:

  • 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: 9.21% compared to the current price 646

Intrinsic Value: 853.61

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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 32.14% compared to the current price ₹646

Last 5 Year EPS CAGR: 20.99%

*Investments are subject to market risks

Strength and Weakness of Nippon Life India Asset Management Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 23.67%, which is a positive sign.
  2. The company has higher reserves (2,077.67 cr) compared to borrowings (7.50 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (205.58 cr) and profit (575.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 47.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 14.92, which may not be favorable.

FAQ

What is the latest fair value of Nippon Life India Asset Management Ltd?

The latest fair value of Nippon Life India Asset Management Ltd is ₹705.51.

What is the Market Cap of Nippon Life India Asset Management Ltd?

The Market Cap of Nippon Life India Asset Management Ltd is 40,811 Cr..

What is the current Stock Price of Nippon Life India Asset Management Ltd as on 24 June 2024?

The current stock price of Nippon Life India Asset Management Ltd as on 24 June 2024 is ₹646.

What is the High / Low of Nippon Life India Asset Management Ltd stocks in FY 2024?

In FY 2024, the High / Low of Nippon Life India Asset Management Ltd stocks is 658/245.

What is the Stock P/E of Nippon Life India Asset Management Ltd?

The Stock P/E of Nippon Life India Asset Management Ltd is 36.9.

What is the Book Value of Nippon Life India Asset Management Ltd?

The Book Value of Nippon Life India Asset Management Ltd is 63.2.

What is the Dividend Yield of Nippon Life India Asset Management Ltd?

The Dividend Yield of Nippon Life India Asset Management Ltd is 2.55 %.

What is the ROCE of Nippon Life India Asset Management Ltd?

The ROCE of Nippon Life India Asset Management Ltd is 36.2 %.

What is the ROE of Nippon Life India Asset Management Ltd?

The ROE of Nippon Life India Asset Management Ltd is 29.5 %.

What is the Face Value of Nippon Life India Asset Management Ltd?

The Face Value of Nippon Life India Asset Management Ltd is 10.0.

About the Author

Author Avatar
Getaka

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