NAM-INDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | NAM-INDIA | Market Cap | 64,447 Cr. | Current Price | 1,010 ₹ | High / Low | 1,065 ₹ |
| Stock P/E | 43.0 | Book Value | 69.3 ₹ | Dividend Yield | 1.78 % | ROCE | 45.2 % |
| ROE | 35.5 % | Face Value | 10.0 ₹ | DMA 50 | 928 ₹ | DMA 200 | 860 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.94 % | PAT Qtr | 383 Cr. | PAT Prev Qtr | 391 Cr. |
| RSI | 57.8 | MACD | 38.4 | Volume | 20,28,794 | Avg Vol 1Wk | 20,48,932 |
| Low price | 613 ₹ | High price | 1,065 ₹ | PEG Ratio | 1.54 | Debt to equity | 0.01 |
| 52w Index | 87.8 % | Qtr Profit Var | 29.4 % | EPS | 23.5 ₹ | Industry PE | 31.6 |
📊 Financials: NAM-INDIA demonstrates strong fundamentals with ROE at 35.5% and ROCE at 45.2%, supported by a nearly debt-free balance sheet (0.01 debt-to-equity). EPS is ₹23.5, though quarterly PAT declined slightly (₹383 Cr vs ₹391 Cr), reflecting minor earnings pressure. Dividend yield of 1.78% provides steady income support.
💹 Valuation: The stock trades at a P/E of 43.0, above the industry average of 31.6, indicating premium valuation. PEG ratio of 1.54 suggests moderately stretched growth alignment. Book value of ₹69.3 provides limited intrinsic backing compared to market price. Overall, valuation remains expensive but justified by strong efficiency metrics.
🏭 Business Model: NAM-INDIA operates in asset management, with strengths in scale, brand reputation, and diversified offerings. Its competitive advantage lies in consistent cash flows, strong institutional presence, and high return ratios. However, premium valuations and minor earnings decline limit near-term upside.
📈 Entry Zone: Attractive entry would be near ₹940–₹960, aligning with support levels and fairer valuation. Current price (₹1,010) is above both 50 DMA (₹928) and 200 DMA (₹860), suggesting bullish momentum. Long-term investors may accumulate gradually, focusing on sustained ROE and ROCE performance.
Positive
- Strong ROE (35.5%) and ROCE (45.2%).
- Debt-free balance sheet (0.01 debt-to-equity).
- Dividend yield of 1.78% provides steady returns.
- DII holdings increased (+0.94%), showing domestic institutional confidence.
Limitation
- High P/E (43.0) vs industry average (31.6).
- PEG ratio of 1.54 indicates moderately stretched valuation.
- Quarterly PAT declined slightly (₹383 Cr vs ₹391 Cr).
- FII holdings decreased (-0.55%), showing reduced foreign confidence.
Company Negative News
- Minor decline in quarterly profits.
- Reduced foreign investor confidence with FII outflows.
Company Positive News
- DII inflows (+0.94%) reflect strong domestic support.
- Strong efficiency metrics with ROE and ROCE well above peers.
- Debt-free operations strengthen financial stability.
Industry
- Asset management sector remains resilient with growing retail and institutional participation.
- Industry P/E at 31.6 highlights NAM-INDIA’s premium valuation.
- Sector growth supported by rising financialization and long-term savings trends.
Conclusion
⚖️ NAM-INDIA demonstrates strong efficiency, debt-free status, and consistent dividend payouts but trades at premium valuations. Entry is favorable near ₹940–₹960 for long-term investors. Current levels suggest cautious accumulation, with better opportunities on dips. Holding is recommended for long-term growth, provided ROE and ROCE sustain above industry averages.