Sharekhan's research report on Nippon Life India Asset Management
Nippon Life Asset Management’s (NAM) results for Q4FY2021 were largely in line with expectations and rise in equity AUM is encouraging. Healthy traction seen, with QAAUM up by 7% q-o-q and 11.6% y-o-y, driven by 19% y-o-y growth in debt AUM and equity AUM grew by 9% y-o-y and 13% q-o-q. Given industry tailwinds, improving operational performance, and reasonable valuations 31.6x/26.7x its FY2022E/FY2023E EPS; On market cap to AUM basis, NAM at 7.6% is at a discount to ~14% commanded by industry leader and we see scope for further re-rating of the stock.
Outlook
We maintain our Buy rating with an unchanged PT of Rs. 418.
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