India’s asset management sector experienced remarkable growth in 2024, with mutual fund assets under management (AUM) soaring 33 percent to Rs 68 lakh crore by November, up from Rs 50.78 lakh crore at the end of 2023. This surge was propelled by Rs 9.14 lakh crore in net inflows and a 5.6 crore increase in investor accounts, highlighting the sector’s expanding reach.
With a market capitalization of Rs 40,500.37 crore, on Wednesday, the shares of Nippon Life India Asset Management Ltd closed at Rs 638.10 per share, increased around 2 percent as compared to the previous closing price.
Brokerage Recommendations
Sharekhane, one of the well-known brokerages in India, gave a ‘Buy’ call on the fintech stock with a target price of Rs 800 apiece, indicating a potential upside of 25 percent from Wednesday’s closing price of Rs 638.10 per share.
Brokerage Rationale
As per the brokerage, NAM India’s unique customer market share rose to 38.3 percent with a customer base of 20.8 million, up 25 percent YoY. SIP flows remained stable, and its market share in B30 cities’ AUM increased by 40 bps. Management expects operating expenses to grow by 15 percent, with stable early trends in April.
Financial Growth
Looking forward to the company’s financial performance, revenue magnified by 21 percent from Rs 468 crore in Q4FY24 to Rs 567 crore in Q4FY25, Further, during the same time frame, net profit plummeted by 13 percent from Rs 343 crore to Rs 299 crore.
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Segment-wise Mix & Geographic Spread
Nippon Life India Asset Management Ltd’s AUM is primarily from Corporate (40 percent) and HNI segment(34 percent), with Retail contributing 27 percent. Geographically, 82 percent of AUM is sourced from T-30 (top 30) cities, while only 18 percent comes from B-30 (beyond top 30) cities, reflecting an urban-centric investor base.
Prominent investor
A prominent domestic institutional investor, Life Insurance Corporation of India, holds 2,34,49,889 equity shares, equivalent to 3.69 percent, in the company as of March 2025.
Company Profile
Nippon Life India Asset Management Limited’s principal activity is to act as an investment manager to 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, etc.
Written by Abhishek Singh
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