Sharekhan has given Buy on the stock with a revised recommendation for Nippon Life India Asset Management with a target price of Rs. ekhan is bullish on Nippon Life India Asset Management has recommended buy on the stock with a revised price target (PT) of Rs. 502 in its research report issued on Jan 27, 2022

Outlook

While NAM witnessed subdued performance on revenue and EBITDA margin, we believe that NAM is in a better position to deliver on profitability given its robust AUM growth in the long term. The company managed to maintain its market share during the quarter. It is also likely to benefit from the leveraging of Nippon Life’s network to garner offshore mandates which would be a key to its future growth. Further, a sustained flow into MF and equity market and its widening distribution network is expected to retain its growth momentum. Additionally, its leadership position in the passive market (ETF space) is likely to benefit the company in terms of valuation as compared to its peers. At CMP, the stock currently trades at 28.9x and 24.3x its FY23E and FY24E EPS. Hence, we maintain a Buy rating on NAM with an unchanged price target (PT) of Rs. 502.

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