NAM-INDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | NAM-INDIA | Market Cap | 53,458 Cr. | Current Price | 839 ₹ | High / Low | 1,009 ₹ |
| Stock P/E | 37.9 | Book Value | 65.4 ₹ | Dividend Yield | 2.15 % | ROCE | 41.6 % |
| ROE | 32.0 % | Face Value | 10.0 ₹ | DMA 50 | 885 ₹ | DMA 200 | 837 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | 0.88 % | PAT Qtr | 391 Cr. | PAT Prev Qtr | 338 Cr. |
| RSI | 42.8 | MACD | -17.6 | Volume | 6,79,275 | Avg Vol 1Wk | 5,53,243 |
| Low price | 456 ₹ | High price | 1,009 ₹ | PEG Ratio | 1.83 | Debt to equity | 0.02 |
| 52w Index | 69.2 % | Qtr Profit Var | 32.2 % | EPS | 22.2 ₹ | Industry PE | 27.4 |
📊 Financials: ROE at 32.0% and ROCE at 41.6% reflect excellent efficiency. Debt-to-equity ratio of 0.02 highlights a near debt-free balance sheet. Quarterly PAT improved from ₹338 Cr. to ₹391 Cr., showing strong earnings growth. EPS of ₹22.2 supports profitability and consistent performance.
💰 Valuation: Current P/E of 37.9 is higher than the industry average of 27.4, suggesting premium valuation. PEG ratio of 1.83 indicates moderate growth prospects relative to valuation. Book value of ₹65.4 against price of ₹839 gives a steep P/B ratio of ~12.8. Dividend yield of 2.15% provides attractive shareholder returns.
🏭 Business Model & Advantage: NAM-India operates in asset management, benefiting from rising financialization of savings and strong brand presence. Competitive advantage lies in scale, diversified product offerings, and growing investor base in mutual funds.
📈 Entry Zone: RSI at 42.8 indicates near oversold conditions. Support lies near ₹830–840 (DMA 200), with resistance around ₹885–1,009. Accumulation is favorable in the ₹820–850 range for long-term investors.
⏳ Long-Term Holding: Strong fundamentals, efficiency, dividend yield, and sector tailwinds make NAM-India a solid candidate for long-term compounding, though valuations are slightly stretched.
Positive
- High ROE (32.0%) and ROCE (41.6%) reflect excellent efficiency.
- Near debt-free balance sheet ensures financial stability.
- Dividend yield of 2.15% provides attractive returns.
- Quarterly PAT growth from ₹338 Cr. to ₹391 Cr.
- FII holdings increased by 0.25% and DII holdings by 0.88%, showing institutional confidence.
Limitation
- High P/E (37.9) compared to industry average (27.4).
- Steep P/B ratio (~12.8) indicates premium valuation.
Company Negative News
- Premium valuations may limit near-term upside.
- MACD at -17.6 indicates weak momentum.
Company Positive News
- Quarterly profit growth highlights operational strength.
- Strong institutional inflows reflect growing confidence.
Industry
- Asset management sector benefits from rising financialization of savings and mutual fund penetration.
- Industry PE at 27.4 suggests NAM-India trades at a premium to peers.
Conclusion
⚖️ NAM-India is fundamentally strong with excellent efficiency, near debt-free status, and attractive dividend yield. While valuations are stretched, sector tailwinds and institutional confidence support long-term growth. Entry is advisable in the ₹820–850 range for margin of safety. Long-term investors can hold for compounding benefits, supported by rising mutual fund penetration and financialization trends.
Selva, I can also prepare a peer benchmarking overlay comparing NAM-India with HDFC AMC, UTI AMC, and Aditya Birla AMC to highlight relative valuation, ROE/ROCE, and dividend efficiency. Would you like me to generate that next?