Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Nippon India Mutual Fund — Investor Presentation (December 2023)
25 slides from Nippon Life India Asset Management's investor presentation, December 2023
Slide 1: CPSE ETF
CPSE ETF (An Open-ended Index Exchange Traded Fund) Product Label Fund Riskometer Benchmark Riskometer This product is suitable for investors who are seeking*: CPSE ETF Nifty CPSE TRI Long term capital appreciation Investment in securities covered by the Nifty CPSE Index *Investors should consult th
Slide 2: About Nifty CPSE Index
About Nifty CPSE Index y @ Nippon idis Mutual Fun Wealth sets you Free 2
Slide 3: About Nifty CPSE Index – Index Methodology
About Nifty CPSE Index – Index Methodology Nifty CPSE Index was constructed in order to facilitate Government of India initiative to disinvest some of its stake in selected CPSEs (Central Public Sector Enterprises) through the ETF route. The index values are to be calculated on free float market cap
Slide 4: CPSE ETF
CPSE ETF y @ Nippon indis Mutual Fund Wealth sets you free 4
Slide 5: About CPSE ETF
About CPSE ETF Investment Objective: CPSE ETF The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the Nifty CPSE Index, by investing in the Securities which are constituents of the Nifty CPSE
Slide 6: CPSE ETF – Portfolio & Industry Allocation
CPSE ETF – Portfolio & Industry Allocation Scheme Portfolio & Sector/ Industry Allocation as on December 31, 2023 Sr. No. Company Name Sector Industry % to NAV 1 Power Grid Corporation of India Ltd. Power Power 20.2% 2 NTPC Ltd. Power Power 19.9% 3 Coal India Ltd. Oil, Gas & Consumable Fuels Consuma
Slide 7: Growth of CPSE ETF – Since Inception
Growth of CPSE ETF – Since Inception Performance as on December 31, 2023 Absolute Returns (%) CAGR (%) AUM Since Scheme Name TER % 1 3 6 1 3 5 7 (Rs. Crs) Inception of Month Months Months Year Years Years Years CPSE ETF* CPSE ETF 30,526 0.05% 14.46 24.86 50.77 75.90 48.70 22.24 14.86 14.74 CPSE ETF
Slide 8: CPSE ETF – Investment Proposition
CPSE ETF – Investment Proposition 8
Slide 9: Power Capex To Drive The Growth Ahead
Power Capex To Drive The Growth Ahead ▪ Power capex is expected to grow the fastest within the traditional infra and industrial segments, as India enters a phase of capex-driven GDP growth, power intensity should rise. ▪ Power generation and Transmission & Distribution investments may rise 2.2x to U
Slide 10: Power Grid Corporation of India Ltd – FY24 capex ramped up
Power Grid Corporation of India Ltd – FY24 capex ramped up Market Cap Industry % Weight in ETF (Rs. Crs.) Power 220,610 20.2% As on December 31, 2023 ▪ Expected visibility on earnings growth trajectory as the company capitalizes on projects aggregating Rs.505 billion over the next few years. ▪ Targe
Slide 11: Power Grid Corporation of India Ltd – FY24 capex ramped up (contd)
Power Grid Corporation of India Ltd – FY24 capex ramped up …(contd) ▪ Power Grid is targeting capex of Rs. 88 billion (including Rs 38 bn from TBCB projects) with upside risks, and capitalization of Rs.110 billion in FY2024E; it expects capex to pick up to Rs. 150-170 billion in FY2025E. ▪ This mont
Slide 12: NTPC Ltd – Improving growth visibility, aggressive capex plans
NTPC Ltd – Improving growth visibility, aggressive capex plans Market Cap Industry % Weight in ETF (Rs. Crs.) Power 301,712 19.9% As on December 31, 2023 ▪ The company has around 17 GW (Gigawatt) of under-construction capacity, comprising 10 GW of coal, and the balance in renewable/ hydro. ▪ NTPC ex
Slide 13: NTPC Ltd – Improving growth visibility, aggressive capex plans (contd)
NTPC Ltd – Improving growth visibility, aggressive capex plans …(contd) ▪ NTPC guided for capitalization of Rs. 800 billion for 10 GW of conventional capacities and Rs. 850-900 billion for 16 GW of renewable capacities, the company also plans to spend another Rs. 300 billion for installing Flue Gas
Slide 14: Coal India (CIL) – Global tailwinds to support pricing
Coal India (CIL) – Global tailwinds to support pricing Market Cap Industry % Weight in ETF (Rs. Crs.) Consumable Fuels 231,719 18.0% As on December 31, 2023 ▪ Coal India’s recent operating performance remains robust – Key points: i. Supplies to regulated and non-regulated sectors rose 5.8% YoY and 7
Slide 15: Coal India (CIL) – Global tailwinds to support pricing (contd)
Coal India (CIL) – Global tailwinds to support pricing …(contd) ▪ China’s thermal coal imports to stay elevated in the near term owing to domestic production being impacted as a result of mine closures pursuant to safety audits and lower hydro-power generation. As a result, the price of Indonesian c
Slide 16: Oil & Natural Gas Corporation Ltd – KG98/2 Oil Production in sight
Oil & Natural Gas Corporation Ltd – KG98/2 Oil Production in sight Market Cap Industry % Weight in ETF (Rs. Crs.) Oil 257,959 16.8% As on December 31, 2023 ▪ After the introduction of windfall taxes, upstream’s net oil realization (post windfall tax, royalty/cess) is limited to around USD 50/bbl. Wh
Slide 17: ONGC – KG98/2 Oil Production in sight (contd)
Oil & Natural Gas Corporation Ltd – KG98/2 Oil Production in sight …(contd) ▪ Near-term focus is on KG-98/2 production start. After declines over an extended period, ONGC’s oil and gas production is likely to increase in the next few years, driven by the commissioning and ramp-up of production from
Slide 18: Bharat Electronics Limited (BEL) – Steady order inflow, best among DPSUs
Bharat Electronics Limited (BEL) – Steady order inflow, best among DPSUs Market Cap Industry % Weight in ETF (Rs. Crs.) Aerospace & Defence 134,646 13.9% As on December 31, 2023 ▪ BEL has a 37% market share in Indian defence electronics. Its core capabilities are in radar & weapons systems, defence
Slide 19: BEL – Steady order inflow, best among DPSUs (contd)
Bharat Electronics Limited (BEL) – Steady order inflow, best among DPSUs …(contd) ▪ BEL has targeted a capex of ~Rs. 8 billion for FY24, during H1 FY2024 capex was around Rs. 2.5 billion. ▪ These fresh orders take the total order inflow for FY2024 (thus far) at Rs. 183 billion, the highest among all
Slide 20: Nifty CPSE Index – Valuations
Nifty CPSE Index – Valuations Price-to-Earnings (P/E) Ratio Nifty CPSE valuation Dates Nifty CPSE PE Nifty 50 PE discount to Nifty 50 Current 29-Dec-23 10.6 23.2 -54% 10 years back 31-Dec-13 10.8 18.7 -42% Nifty CPSE PE – Historical chart 20.0 15.0 Current PE 10.6X 10.0 10 Year Historical Average PE
Slide 21: Scheme Performance of CPSE ETF
Scheme Performance of CPSE ETF NAV as on December 29, 2023: ₹66.7770 CAGR % Particulars 1 Year 3 Years 5 Years Since Inception CPSE ETF 75.90 48.70 22.24 14.74 B: Nifty CPSE TRI 76.65 49.38 22.79 13.52 AB: Nifty 50 TRI 21.36 17.24 16.25 14.21 Value of ₹10000 Invested CPSE ETF 17,562 32,810 27,280 38
Slide 22: Performance of Other Open-Ended Schemes Managed by the Same Fund Manager
Performance of Other Open-Ended Schemes Managed by the Same Fund Manager CAGR % Scheme Name/s 1 Year Return 3 Years Return 5 Years Return Scheme Benchmark Scheme Benchmark Scheme Benchmark Top 3 Nippon India Nifty Auto ETF* 48.54 48.91 NA NA NA NA Nippon India Nifty Smallcap 250 Index Fund# 47.23 49
Slide 23: Product Labels
Product Labels Nippon India Nifty Auto ETF (An open ended scheme replicating! tracking Nifty Auto Index) Fund Riskometer Benchmark Riskometer Nippon India Gold Savings Fund (Aopen ended! scheme sted on the Exchong in the frm ofan Exchange Traded Fund (e)nvacting in pnysioal go) Fund Riskometer Bench
Slide 24: Disclaimers
Disclaimers Risk factors: The scheme invests in equity instrument and hence carries risk inherent in equities. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments. Investment in Money Market is subject to liquidity, credit, interest rate & reinve
Slide 25: Thank you for your time!
<Q) Nippon india Mutual Fund y Wealth sets you free Thank you for your time! y @ Nippon idis Mutual Fun 25 Wealth sets you free
Nippon India Mutual Fund — Investor Presentation (December 2023) on 6ix