Prabhudas Lilladher's research report on Nippon Life India Asset Management
NAM saw a strong quarter yet again as core income was 4.5% ahead of PLe driven by 1.9%/2.7% beat on revenue/opex. Despite equity QAAuM growth of 5.2% QoQ, blended yields were better at 40.2bps due to increase in share of gold/silver ETF which have a higher yield of 60/35bps respectively. As of Jan’26 end, gold+silver ETF AuM, jumped to Rs1trn from Rs688bn (+45% MoM); it now contributes 14-15% of overall AuM and hence becomes a key monitorable. NAM continues to gain market share in net equity flows which stood at 10.4% for 9MFY26 led by consistent performance in 3/5-yr buckets.
Outlook
We raise net yield (1) in equity due to lower commission and (2) in ETF due higher share of gold/silver which has resulted in core PAT upgrade of 4%/10% in FY27/28E. Over FY25- 28E we expect core PAT CAGR of 17.4%. We tweak multiple on Sep’27 core EPS to 35x (from 34x) and raise TP to Rs1,000 from Rs930. Retain ‘BUY’.
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Nippon Life India Asset Management - 0402026 - prabhu