The shares of this asset management company gained up to 6 percent after the company’s net profit and revenue increased by 41 percent and 43 percent YoY, respectively in Q1FY25.
Nippon Life India Asset Management Ltd has a market capitalization of Rs 41,055.15 crore, the shares were trading at Rs 649.85 per share, increasing around 2.41 percent as compared to the previous price of Rs 634.55 apiece.
Reason for rise:-
According to the company filing, Nippon Life India Asset Management Ltd’s revenue zoomed by 8 percent on a quarter-on-quarter basis from Rs.468 crores in Q4FY24 to Rs. 505 crores in Q1FY25. Further, revenue magnified by 43 percent year on year from Rs 354 crores in Q1FY24 to Rs. 505 crores in Q1FY25.
Nippon Life India Asset Management Ltd’s net profit decreased by 3 percent on a quarter-on-quarter basis from Rs. 343 crores in Q4FY24 to Rs 332 in Q1FY25. Further, on a year-on-year basis also net profit magnified by 40 from Rs. 236 crores in Q1FY24 to Rs. 332 crores in Q1FY25.
Remarkable return:-
The stock has given a return of 33.29 percent in the past six months and a multi-bagger return of 105 percent in a year. If an individual investment of Rs. 1 lakh in the company would be worth Rs. 2.05 lakh in a year.
Ratio analysis & shareholding pattern:-
The company’s critical ratios show that the return on equity increased from 20.57 percent in FY22-23 to 27.87 percent in FY23-24, while the return on capital employed increased from 25.37 percent to 32.75 percent. The net profit margin (NPM) for fiscal year 23-24 is 67.32 percent.
In the company’s recent shareholding pattern, the Promoters of the company own 72.66 percent while Retail shareholders own a 6.43 percent stake in the company, and Foreign Institutional Investors own a 6.56 percent stake.
Company profile:-
Nippon Life India Asset Management Ltd’s principal activity is to act as an investment manager for Nippon India Mutual Fund. The Company is involved in managing mutual funds, such as exchange-traded funds (ETFs); managed accounts, including portfolio management services, alternative investment funds, and pension funds.
Written by:- Abhishek Singh
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