Nippon Life India Asset Management Ltd.
NSE: NAM-INDIANippon Life India Asset Management Ltd.: A 30-second snapshot
Nippon Life India Asset Management (NAM-INDIA) trades at ₹1,100.60, up 59.7% over 12 months and within 1.6% of its 52-week high. The company reported Q4 FY26 profit growth of 29% year-on-year and declared a ₹12.50 final dividend, with trailing ROE of 34.48% and a 52.14% profit margin reflecting the fee-based AMC business model. The stock trades above both its 50-DMA (₹940.89) and 200-DMA (₹881.84) with RSI at 63.04.
P/E
46.5
Forward P/E
33.5
ROE
+34.5%
Debt / Equity
1.62
Profit Margin
+52.1%
Div. Yield
+1.9%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
78/100
News
8 headlines · 4 positive · 0 negative
Nippon Life AMC Q4 profit up 29%; declares ₹12.50 final dividend - CNBC TV18
CNBC TV18
Nippon Life India Asset Management Q3 Results - Mint
Mint
Buy Nippon Life India Asset Management; target of Rs 1150: Emkay Global Financial - Moneycontrol.com
Moneycontrol.com
Buy Nippon Life India Asset Management; target of Rs 1050: Prabhudas Lilladher - Moneycontrol.com
Moneycontrol.com
125% Dividend Alert! AMC announces cash reward in Q4 FY26 results - Check record date - Zee Business
Zee Business
Recent context
- ·Q4 FY26 results showed net profit up 29% year-on-year; the company declared a ₹12.50 final dividend (reported as a 125% dividend on face value), with dividend yield at 1.95% at the current price.
- ·Emkay Global Financial cited a specific price target in its coverage note published around April 28; Prabhudas Lilladher also published a note on the same date — both are third-party broker views and do not represent VivaTrades analysis.
- ·The stock has gained 15.82% over the past 3 months, with RSI at 63.04 (within the neutral zone) and a 52-week drawdown of just -1.55%, indicating price action near the upper boundary of the 12-month range.
Strengths
- +ROE of 34.48% is the highest among the 6-stock Banking sector peer group by a wide margin; next closest peer (BAJFINANCE) shows 17.91% — a gap of more than 16 percentage points.
- +Profit margin of 52.14% and 5-year earnings CAGR of 27.3% reflect the operating leverage inherent in an AUM-linked fee business, where incremental AUM adds revenue with minimal incremental cost.
- +Persistence metrics are consistent: ROE above 15% in 4 of the available years, FCF positive in 4 years, and a consistency score of 83 — indicating earnings and return quality have not been episodic.
- +Forward PE of 33.50 represents a meaningful compression from the trailing PE of 46.49, suggesting the market is pricing in continued earnings growth over the next 12 months.
Weaknesses
- −D/E of 1.617 with a rising debt trend sits above what is typical for an asset-light AMC; without clarity on the purpose of the leverage, this metric warrants tracking against future quarters.
- −Sector classification under Banking places NAM-INDIA alongside commercial banks and insurers, making all peer-relative metrics (PE rank 5th of 6, ROE rank 1st of 6) difficult to interpret cleanly — the ranking context is structurally mismatched.
- −Nearest support levels at ₹846–₹900 are 18–23% below the current price; the stock has no meaningful technical support between its current level and that cluster, representing the downside gap if the 59.7% rally were to partially retrace.
- −News coverage is thin at 8 articles over the capture window, limiting visibility into AUM flows, competitive dynamics from other large AMCs, or any regulatory developments from SEBI affecting the mutual fund industry.
Open questions
- ?How has NAM-INDIA's AUM market share trended relative to HDFC AMC, SBI Mutual Fund, and other large AMCs over the past 3 years, and does that trajectory explain the earnings CAGR of 27.3%?
- ?What is driving the rising D/E ratio in an asset-light AMC — is it a share buyback program, an acquisition, or working capital — and how does that compare to peers like HDFC AMC?
- ?The forward PE of 33.50 implies a meaningful earnings step-up: what analyst assumptions underpin that estimate (AUM growth rate, equity market level, fee compression) and how sensitive is it to a flat or declining equity market?
- ?Given the 59.7% 12-month price appreciation against 27.3% 5-year earnings CAGR, how much of the current valuation reflects a re-rating of the AMC sector broadly versus company-specific execution?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| NAM-INDIA | Nippon Life India Asset Management Ltd.You're viewing | 46.5 | +34.5% | 69 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹1,100.60
SMA 50
₹940.89
SMA 200
₹881.84
RSI (14)
63.0 (neutral)
From 52w high
-1.6%
1Y return
+59.7%
3M return
+15.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumNAM-INDIA is Nippon Life India Asset Management, an AMC, but is classified in the Banking sector alongside HDFCBANK, AXISBANK, BAJFINANCE, BAJAJFINSV, and HDFCLIFE. AMC revenues are fee-based on AUM; the business model, capital structure, and margin profile are structurally different from bank NII or insurance float. Direct PE and ROE comparisons to this peer group carry limited interpretive value.
- mediumDebt-to-equity of 1.617 with a rising debt trend in the persistence data. An AMC is an asset-light business and does not typically require balance-sheet leverage, making the rising D/E trajectory worth examining against what is being financed.
- lowNearest resistance sits at ₹1,117.90, approximately 1.6% above the current price of ₹1,100.60. The stock has rallied 59.7% over 12 months and is trading close to a defined overhead level; nearest support cluster is 18–23% below at ₹846–₹900.
- lowNews sample is limited to 8 articles over the capture window with zero negative items. The shallow pool reduces visibility into any regulatory, competitive, or AUM-flow developments not captured in these headlines.
Cross-section contradictions
- Trailing PE of 46.49 is the second-highest in the Banking peer group (after HDFCLIFE at 68.47), yet ROE of 34.48% is the highest among all 6 peers by a wide margin — next closest is BAJFINANCE at 17.91%. The valuation premium and superior return profile may both be rational for an AMC fee-income model, but the mismatched sector classification prevents a clean conclusion.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days