Emkay Global Financial' research report on Nippon Life India Asset Management
NAM delivered a healthy performance during Q4FY26, with MF QAAUM at Rs7.25trn (+3% QoQ) while its market share was up by 24bps on sequential basis. Revenue yield at 41.3bps increased by 1bp sequentially, led by a change in asset mix toward commodity ETFs. Resultantly, revenue at Rs7.39bn increased 5% QoQ, while EBITDA margin at 68.6% expanded by 200bps QoQ. The management plans to mitigate the 3-4bps impact on account of the new TER regulation by passing it to distributors. The management intends to maintain focus on growing absolute profitability in line with or higher than that of industry players rather than monitoring yields on basis points.
Outlook
To bake in the Q4 developments, we tweak our estimates which results in ~1-2% increase in PAT over FY27-28E. We maintain BUY and Mar-27E TP of Rs1,150 implying FY28E P/E of ~35x.
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Nippon Life India Asset Management - 2804026 - emkay