Nippon Life India Asset Management Limited

Financial Services — Asset Management · NSE

₹1,065.30−₹23.50 (−2.16%)

DalalBaazaar Score

81 / 100

🟢 Strong

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

The 60-second version of Nippon Life India Asset Management Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nippon Life Asset Management Limited is a publicly owned investment manager. The firm launches and manages equity and fixed income mutual funds for its clients. It also manages exchange traded funds for its clients.

IndustryAsset Management

SectorFinancial Services

Employees1,142

Annual revenue₹2,709 Cr

How does it make money?

Turns over ₹2,709 Cr a year. Of every ₹100 of sales, about ₹56 reaches shareholders as profit, with ₹68 left at the operating level before interest, tax and depreciation. Each of its 1,142 employees supports ₹2.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

22 analysts covering the stock expect revenue to grow about 17.3% and earnings to grow about 17.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.3%

Est. earnings growth+17.5%

Analysts22

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +101% while net margin moved +5% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+101%

Margin effect+5%

DalalBaazaar Score

81/ 100

Strong

Weighted across six categories. Every point is explained below.

✗ P/E of 42.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 43.7x
✗ P/B of 14.59x is a steep premium to book
✓ Dividend yield of 2.02% pays you to wait

Quality vs. Valuation

Company Quality

89/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

42.2x

3Y Median

43.7x

40 monthly readings · mean 43.1x · range 27.1x–58.0x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 43.7x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 149% above the peer median of 17.0x.

vs. its own history

Fair

43.7x median over 40 months · -3%

vs. sector peers

Expensive

17.0x median of 4 peers · +149%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

37.1x

PEG

1.49

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 61.0% to 67.9% over 3 years.
Return on equity is rising
ROE has improved from 20.6% to 32.8%.
Return on capital is rising
ROCE has improved from 25.6% to 40.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Low reported insider holdingOwnership
Reported insider holding is 0.6%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 61.0% to 67.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 149% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 20% a year✓ 26.1% CAGR
Latest reported year was 24.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 66%✓ 67.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 31%✓ 32.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 43.7x✓ 42.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 1 neutral · 3 weak

Market Cap

₹68,184 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

42.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

14.59x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹25.22

Profitable

Profitable on a per-share basis

ROE

32.8%

Strong

Strong capital efficiency

ROCE

40.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.62x

High

High leverage

Revenue Growth (YoY)

24.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

26.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.02%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1,387 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

31.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

71.1%

Good

Healthy core-business profitability

Net Margin

52.5%

Good

Strong bottom-line conversion

Current Ratio

13.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1090.3 / 1147.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

32.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,350 Cr	₹1,643 Cr	₹2,231 Cr	₹2,709 Cr	+26.1%
EBITDA	₹823 Cr	₹1,024 Cr	₹1,479 Cr	₹1,840 Cr	+30.8%
EBITDA Margin	61.0%	62.3%	66.3%	67.9%	—
PAT (Net Profit)	₹723 Cr	₹1,107 Cr	₹1,286 Cr	₹1,529 Cr	+28.3%
EPS	₹11.53	₹17.53	₹20.03	₹23.63	+27.0%
ROE	20.6%	27.8%	30.5%	32.8%	—
ROCE	25.6%	32.2%	38.0%	40.0%	—
Total Debt	₹56 Cr	₹79 Cr	₹88 Cr	₹75 Cr	+10.4%
Free Cash Flow	₹574 Cr	₹766 Cr	₹659 Cr	₹1,387 Cr	+34.2%

🟢 Revenue has grown at 26.1% a year over 3 years.

🟢 EBITDA has grown at 30.8% a year over 3 years.

🟢 EBITDA Margin has risen from 61.0% to 67.9% over 3 years (+7.0 pts).

🟢 PAT (Net Profit) has grown at 28.3% a year over 3 years.

🟢 EPS has grown at 27.0% a year over 3 years.

🟢 ROE has risen from 20.6% to 32.8% over 3 years (+12.3 pts).

🟢 ROCE has risen from 25.6% to 40.0% over 3 years (+14.4 pts).

🔴 Total Debt has grown at 10.4% a year over 3 years.

🟢 Free Cash Flow has grown at 34.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,192 Cr

Total Liabilities

₹533 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹1,466 Cr

Capex

-₹79 Cr

Shareholding (proxy)

Institutional Holding

89.7%

Insider Holding

0.6%

Corporate Actions

Dividend Rate

₹21.5

Ex-Dividend Date

25 Jun 2026

Analyst Consensus

Recommendations

19 Buy · 4 Hold · 1 Sell

Target Price (Mean)

₹1,233.13

+15.8% vs CMP

Target Range

₹960 – ₹1,395

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

3 mixed3 general

Nippon Life India Asset Management (NAM-INDIA) Share Price rises 2.97% today

Univest, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

3 Indian Asset Manager Stocks In Focus As Bond Yields Reset Valuations

Simply Wall Street, 16 Oct

Nippon Life India Asset Management (NAM-INDIA.NS) Eases to ₹1040.7 as Stock Holds Mid-Range - Exhaustion Gap

siam.in, 08 Oct

AMC stocks gain up to 33% in H1 FY27 despite market turmoil

The Economic Times, 13 Oct

Nippon Life India Asset Management To Hold Analyst And Investor Meetings On August 24-25

Sahi, 19 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Earnings call transcript: Nippon Life India Asset Management posts record q1 2026

Investing.com, 22 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 4 tripwires holding · see Key things to watch ↑