NAM-INDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | NAM-INDIA | Market Cap | 69,318 Cr. | Current Price | 1,086 ₹ | High / Low | 1,125 ₹ |
| Stock P/E | 46.3 | Book Value | 69.3 ₹ | Dividend Yield | 1.98 % | ROCE | 45.2 % |
| ROE | 35.5 % | Face Value | 10.0 ₹ | DMA 50 | 996 ₹ | DMA 200 | 890 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.94 % | PAT Qtr | 383 Cr. | PAT Prev Qtr | 391 Cr. |
| RSI | 57.6 | MACD | 33.8 | Volume | 9,06,896 | Avg Vol 1Wk | 10,66,545 |
| Low price | 712 ₹ | High price | 1,125 ₹ | PEG Ratio | 1.66 | Debt to equity | 0.01 |
| 52w Index | 90.6 % | Qtr Profit Var | 29.4 % | EPS | 23.5 ₹ | Industry PE | 30.0 |
📊 Financials: The company demonstrates strong profitability with ROE at 35.5% and ROCE at 45.2%, reflecting excellent efficiency in capital usage. Debt-to-equity is very low at 0.01, showing a nearly debt-free balance sheet. Quarterly PAT declined slightly from ₹391 Cr. to ₹383 Cr., showing minor earnings pressure. EPS of ₹23.5 supports consistent cash flow generation.
💹 Valuation: Current P/E of 46.3 is higher than the industry average of 30.0, suggesting overvaluation. The PEG ratio of 1.66 indicates growth prospects are moderately aligned with price. Book value of ₹69.3 against a market price of ₹1,086 implies a stretched P/B ratio. Intrinsic value appears lower than current levels, requiring cautious accumulation.
🏭 Business Model: The company operates in asset management, benefiting from strong domestic demand for mutual funds and investment products. Competitive advantage lies in brand strength, distribution network, and institutional support, though valuations remain stretched compared to peers.
📈 Entry Zone: A favorable entry would be closer to ₹1,000–1,050, near the 50 DMA of ₹996 and 200 DMA of ₹890. Current price of ₹1,086 is slightly above fair value, so accumulation on dips is recommended.
⏳ Long-Term Holding: Strong fundamentals, brand dominance, and consistent profitability make it suitable for long-term holding. However, stretched valuations suggest cautious accumulation rather than aggressive buying.
Positive
- ✅ Strong ROE (35.5%) and ROCE (45.2%)
- ✅ Debt-free balance sheet (Debt-to-equity 0.01)
- ✅ EPS of ₹23.5 supports cash flow generation
- ✅ Dividend yield of 1.98% adds shareholder value
- ✅ Increase in DII holding (+0.94%) shows domestic institutional confidence
Limitation
- ⚠️ High P/E (46.3) compared to industry average
- ⚠️ Stretched P/B ratio (Price ₹1,086 vs. Book Value ₹69.3)
- ⚠️ PEG ratio of 1.66 indicates moderate growth prospects
Company Negative News
- 📉 Decline in FII holding (-0.55%) shows reduced foreign investor confidence
- 📉 Minor decline in quarterly PAT from ₹391 Cr. to ₹383 Cr.
Company Positive News
- 📈 Increase in DII holding (+0.94%) reflects strong domestic institutional support
- 📈 RSI at 57.6 indicates neutral-to-positive momentum
Industry
- 💰 Asset management sector benefits from rising investment demand
- 📊 Industry P/E at 30.0 suggests peers are valued lower
- 🌍 Growth opportunities in mutual funds, SIPs, and retail investments
Conclusion
Overall, the company is financially strong with excellent return ratios, low debt, and consistent earnings. However, valuations are stretched compared to peers, limiting upside potential. Best strategy is cautious accumulation near ₹1,000–1,050 for long-term holding, while avoiding aggressive buying at current levels.
Would you like me to extend this with a peer comparison against other asset management companies, or a technical analysis view to highlight support/resistance and momentum indicators?