Add Nippon Life India Asset Management, target price Rs 350: HDFC Securities

HDFC Securities has add call on Nippon Life India Asset Management with a target price of Rs 350.The current market price of Nippon Life India Asset Management is Rs 239.95.

Nippon Life India Asset Management, incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 14946.32 Crore) operating in Financial Services sector.

Nippon Life India Asset Management key Products/Revenue Segments include Investment Management & Advisory Fees and Income From Portfolio Management Services for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 415.74 Crore, up .55 % from last quarter Total Income of Rs 413.47 Crore and up 12.69 % from last year same quarter Total Income of Rs 368.93 Crore. Company has reported net profit after tax of Rs 204.81 Crore in latest quarter.

The company’s top management includes Mr.Sundeep Sikka, Ms.Ameeta Chatterjee, Maj.Gen.(Retd.)Ved Prakash Malik, Mr.Ashvin Parekh, Mr.B Sriram, Mr.Akira Shibata, Mr.Tomohiro Yao, Mr.Minoru Kimura. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 62 Crore shares outstanding.

Investment Rationale
The brokerage is encouraged by the improvement (+52bps QoQ) in SIP market share at 7.3% and argue this is key for long-term franchise strength and sustainability. Additionally, the brokerage expects NAM to capitalise on its rising credibility to raise HNI/institutional capital.

Promoter/FII Holdings
Promoters held 73.66 per cent stake in the company as of 31-Dec-2022, while FIIs owned 5.77 per cent, DIIs 9.06 per cent.