Nippon Life Q2 Results Review - Another Stellar Quarter: Centrum

Centrum Report

Nippon Life India Asset Management Ltd.’s strong run continues with its quarterly annual assets under management increasing 57% YoY and 14% QoQ to Rs 5.5 tonne at end Q2 FY25. The market share on both, equity and overall basis has increased with it maintaining its fourth position in the industry.

The net flows in the equity and hybrid segment continued to remain higher than the equity AUM market share. At end Q2, profit after tax increased 47% YoY impacted by one-offs on the taxes announced in the budget.

While core profit after tax expanded 48% YoY to Rs 2.7 billion, core operating profit increased 55% YoY to Rs 3.7 billion. We increase our PAT estimates by 8-15% over FY25-27 reflecting the strong momentum.

We maintain the target multiple at 33 times earning per share, i.e. +1sd from the long-term mean, rolling over the valuation to September 2026. These lead us to a revised target price of Rs. 850 (versus Rs. 735 earlier). We upgrade the stock to Buy from Add.

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