Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Nippon India Mutual Fund — Investor Presentation (November 2024)
30 slides from Nippon Life India Asset Management's investor presentation, Nov 14, 2024
Slide 1: Nippon India Nifty Auto Index Fund
Nippon India Nifty Auto Index Fund (An open-ended scheme replicating/tracking Nifty Auto Index) New Fund Offer Opens on November 14, 2024 New Fund Offer Closes on November 28, 2024 Offer of Units of Rs. 10/- each during the New Fund Offer and Continuous offer for Units at NAV based Prices Product La
Slide 2: Indian Auto Sector - Overview
Indian Auto Sector - Overview 2
Slide 3: Evolution of Indian Automobile Industry
Evolution of Indian Automobile Industry 1980s • Limited Players. • Long waiting period for buying. Closed Market • Sellers Market. 1983-1992 • Maruti Udhyog formed and commenced production. Production Initiation • Component manufacturing started with joint ventures. • Sector de-licensed in 1993, maj
Slide 4: Auto Manufacturers – Industry Highlights
Auto Manufacturers – Industry Highlights FY 2023-24 (Composition) Passenger 17.7% Vehicles Commercial 4.1% Vehicles 2.9% Three Wheelers 75.4% Two Wheelers Composition based on units sold ➢ Indian automotive manufacturing industry comprises of passenger vehicles, commercial vehicles, three-wheelers a
Slide 5: Auto Manufacturers – Steady Numbers
Auto Manufacturers – Steady Numbers 30 Domestic Sales (Units) 35 25 Production (Units) 26.3 23.9 20 21.5 21.2 30 Million Units 30.9 15 18.6 17.6 28.4 10 25 26.4 25.9 5 Million Units 22.7 23.0 20 0 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 15 6.0 Exports (Units) 5.0 5.6 10 Million units 4
Slide 6: Auto Manufacturers – Steady Numbers
Auto Manufacturers – Steady Numbers Passenger Vehicles (Units) Two Wheelers (Units) 4.5 25.0 4.0 4.2 3.5 3.9 20.0 21.2 3.0 3.4 18.0 Million Units Million Units 3.1 15.0 17.4 2.5 2.8 2.7 15.1 15.9 2.0 13.6 10.0 1.5 1.0 5.0 0.5 0.0 0.0 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 18-19 FY
Slide 7: Auto Components – Diversified Offering
Auto Components – Diversified Offering 700 Industry Size (000' Crs) 600 615 560 500 400 421 396 300 350 341 200 100 0 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 ➢ The Auto Components industry grew 10% YoY to Rs. 6.15 lakh crores (FY24) attributed to production growth and increase in value
Slide 8: Auto Components – Diversified Offering
Auto Components – Diversified Offering ➢ Component Supply to OEMs: ▪ The industry caters to Passenger Vehicles, 2/3 Wheelers, LCVs, Tractors, MHCVs. ▪ Passenger Vehicles, 2 Wheelers and LCVs account for approx. ~80% of exposure. (FY24) ➢ Diversified Product offerings: ▪ The industry offers varied pr
Slide 9: Electric Vehicles – Acceleration in Growth
Electric Vehicles – Acceleration in Growth Vehicle Sales (by Fuel Type) 90% 84% 80% 77% 70% 60% 50% 40% 30% 20% 11% 12% 10% 7% 2% 2% 1% 0% 1% 2% 0% 0% 0% 0% 0% 0% FY23-24 FY19-20 Petrol Diesel EV Petrol/CNG CNG/LPG Petrol/Hybrid Others Diesel/Hybrid ➢ Demand for EVs is booming, driven by government
Slide 10: Indian Auto Sector – Growth Drivers
Indian Auto Sector – Growth Drivers 10
Slide 11: 1. Growing Demand
1. Growing Demand ➢ Ample growth potential, especially for the passenger vehicles and 2Wheelers segment – ▪ India has 26 cars per 1,000 people (FY24) significantly lower than the developed nations (USA at 504 cars) and even emerging nations like Russia (351 cars), Mexico (280 cars) and Brazil (276 c
Slide 12: 2. Policy Support
2. Policy Support ➢ Initiatives like PLI Scheme, Automotive Mission Plan 2026 and PM E-DRIVE will give boost to the sector. ➢ PLI Scheme: ▪ The Union Cabinet outlaid Rs. 57,042 crore (US$ 7.81 billion) for enhancing India’s manufacturing capabilities in the sector, giving boost to economic growth ov
Slide 13: 3. Investments and Capacity Building
3. Investments and Capacity Building ➢ Promoting localization and reduce import dependence through initiatives such as the PLI scheme, Phased Manufacturing Program, Atmanirbhar Bharat and the Make in India campaign. ➢ India to benefit from global supply chain de-risking making it an alternative sour
Slide 14: Indian Auto Sector – Fundamentals and Valuations
Indian Auto Sector – Fundamentals and Valuations 14
Slide 15: Nifty Auto – Improving Fundamentals
Nifty Auto – Improving Fundamentals Return on Assets (%) Return on Capital Employed (%) 7.0 12.0 6.0 6.2 10.5 10.0 6.0 10.0 5.0 4.3 8.0 4.0 6.0 6.0 3.0 1.8 1.8 4.0 2.9 2.0 2.7 1.1 1.2 1.8 1.8 1.0 2.0 0.0 0.0 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Operating Profit Margi
Slide 16: Nifty Auto – Valuations
Nifty Auto – Valuations Price-to-Earnings (P/E) Ratio Dates Nifty Auto P/E Current 31-Oct-24 23.1 10 years back 31-Oct-14 38.9 Discount/Premium -40.6% ➢ Currently, the Nifty Auto index is valued at a P/E ratio of 23.1x, which represents a ~40% discount relative to its level from ten years prior Past
Slide 17: Nifty Auto Index
Nifty Auto Index y @ Nippon india Mutual Fund 17 Wealth sets you Free
Slide 18: Nifty Auto Index – Methodology
Nifty Auto Index – Methodology ▪ Companies should form part of – Universe ✓ Nifty 500^ ✓ Auto sector Eligibility ▪ The company should have a minimum listing history of 1 month as on cutoff date ▪ Final selection of top 15 companies shall be done based on the free-float Selection and market capitaliz
Slide 19: Nifty Auto Index – Constituents
Nifty Auto Index – Constituents Weightage Sr No. Stocks Basic Industry (%) 1 Mahindra & Mahindra Ltd. Passenger Cars & Utility Vehicles 22.2 2 Tata Motors Ltd. Passenger Cars & Utility Vehicles 16.1 3 Maruti Suzuki India Ltd. Passenger Cars & Utility Vehicles 13.3 4 Bajaj Auto Ltd. 2/3 Wheelers 9.9
Slide 20: Performance – Since Inception of Nifty Auto Index
Performance – Since Inception of Nifty Auto Index Performance Absolute (%) Compound Annualized (%) Index Name 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Nifty Auto TRI -13.0 -11.7 5.3 48.7 28.7 24.0 12.1 410,000 31x 360,000 Period: Jan 01, 2004 to Oct 31, 2024 310,000 Nifty Auto TRI -
Slide 21: Performance – Rolling Returns
Performance – Rolling Returns 30 25 24.0 20 17.1 16.6 Average CAGR (%) 15.8 15 10 5 0 1 Year 3 Years 5 Years 10 Years Average Rolling Returns (%) ➢ Consistent performance across time periods Rolling returns are compounded annualized and calculated on a daily frequency basis | Total Return Index (TRI
Slide 22: Performance – Calendar Year Returns
Performance – Calendar Year Returns 70 58.2 48.9 50 32.7 30 27.2 20.3 Percent (%) 16.6 10.7 11.7 13.0 10 0.3 -10 -9.4 -22.2 -30 2024-YTD 2018 2023 2013 2014 2015 2016 2017 2019 2020 2021 2022 ➢ Nifty Auto has given an average return of 17.3% in last 12 years Total Return Index (TRI ) values used for
Slide 23: Fund Overview
Fund Overview y @ Nippon india Mutual Fund 23 Wealth sets you Free
Slide 24: Benefits of Investing in an Index Fund
Benefits of Investing in an Index Fund ▪ Constructed to track an index ▪ Open ended mutual fund ▪ Diversification through a single unit ▪ Generally lower expense ratio as compared to an active managed mutual fund ▪ Performance tracking the underlying benchmark index (subject to expense ratio & track
Slide 25: Why Invest ??
Why Invest ?? • Provides exposure to top 15 Automobile stocks listed Sector Exposure on NSE Diversified • Auto Index constituents include - Passenger vehicles, 2/3 wheelers, trucks, tractors, auto components, tyre Constituents manufacturers and EV players • Elimination of non-systematic risks like s
Slide 26: Nippon India Nifty Auto Index Fund – About The Scheme
Nippon India Nifty Auto Index Fund – About The Scheme Investment objective The investment objective of the scheme is to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty Auto Index before expenses, subject to tracking errors. However, the
Slide 27: Scheme Details
Scheme Details Scheme Features NFO Opens on November 14, 2024 NFO Closes on November 28, 2024 Benchmark Index Nifty Auto TRI Fund Manager Himanshu Mange Load Structure Exit Load : NIL During NFO: Minimum amount of Rs.1,000 and in multiples of Re.1 thereafter Minimum application amount (during NFO Du
Slide 28: Disclaimers
Disclaimers Disclaimer by the Index Provider: Performance of the underlying index will have a direct bearing on the performance of the Scheme. In the event the index is dissolved or is withdrawn by the index provider, the Trustee reserves a right to modify the Scheme so as to track a different and s
Slide 29: Disclaimer
Disclaimer • Risk Factors: Mutual Funds and securities investments are subject to market risks such as trading volumes, settlement risk, liquidity risk and default risk including the possible loss of principal and there is no assurance or guarantee that the objectives of the Scheme will be achieved.
Slide 30: Thank you for your time!
<Q) Nippon india Mutual Fund Wealth sets you free Thank you for your time! y @ Nippon india Mutual Fund 30 Wealth sets you Free
Nippon India Mutual Fund — Investor Presentation (November 2024) on 6ix