⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NAM-INDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | NAM-INDIA | Market Cap | 55,389 Cr. | Current Price | 870 ₹ | High / Low | 987 ₹ |
| Stock P/E | 39.3 | Book Value | 65.4 ₹ | Dividend Yield | 2.07 % | ROCE | 41.6 % |
| ROE | 32.0 % | Face Value | 10.0 ₹ | DMA 50 | 864 ₹ | DMA 200 | 811 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | 0.88 % | PAT Qtr | 391 Cr. | PAT Prev Qtr | 338 Cr. |
| RSI | 51.8 | MACD | -5.31 | Volume | 9,29,640 | Avg Vol 1Wk | 15,10,984 |
| Low price | 456 ₹ | High price | 987 ₹ | PEG Ratio | 1.89 | Debt to equity | 0.02 |
| 52w Index | 77.9 % | Qtr Profit Var | 32.2 % | EPS | 22.2 ₹ | Industry PE | 25.3 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 338 Cr. to 391 Cr. (+32.2%), showing strong earnings growth. EPS at 22.2 ₹ reflects consistent profitability.
- Margins: ROCE at 41.6% and ROE at 32.0% highlight excellent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.02 indicates negligible leverage, strengthening financial stability.
- Cash Flow: Dividend yield of 2.07% provides attractive shareholder returns, supported by healthy cash flows.
💹 Valuation Indicators
- P/E Ratio: 39.3 vs Industry PE of 25.3 → Overvalued compared to peers.
- P/B Ratio: Current Price (870 ₹) / Book Value (65.4 ₹) ≈ 13.3 → Premium valuation.
- PEG Ratio: 1.89 → Fair but leaning expensive relative to growth.
- Intrinsic Value: Current price trades above fair value, limiting near-term upside.
🏭 Business Model & Competitive Advantage
- NAM India operates in asset management, benefiting from rising financialization and mutual fund penetration in India.
- Strong brand presence, diversified product offerings, and institutional trust provide competitive advantage.
- Low debt and high return ratios strengthen long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 800 ₹ – 830 ₹, closer to DMA 200 support levels.
- Long-Term Holding: Suitable for investors seeking exposure to India’s asset management growth story. Staggered buying recommended due to premium valuations.
✅ Positive
- Quarterly PAT growth (+32.2%) shows strong earnings momentum.
- High ROCE (41.6%) and ROE (32.0%) highlight efficiency.
- Debt-to-equity ratio of 0.02 ensures financial resilience.
- Dividend yield of 2.07% provides attractive income.
- FII holding increased by 0.25% and DII holding by 0.88%, showing institutional confidence.
⚠️ Limitation
- High P/E (39.3) and P/B (13.3) ratios indicate stretched valuations.
- PEG ratio of 1.89 signals limited growth relative to valuation.
- MACD at -5.31 suggests weak near-term momentum.
📉 Company Negative News
- Valuation multiples remain significantly higher than industry averages.
- Near-term technical indicators show weak momentum.
📈 Company Positive News
- Quarterly PAT rose from 338 Cr. to 391 Cr.
- FII inflows (+0.25%) and DII inflows (+0.88%) highlight institutional support.
- Strong dividend yield supports shareholder value.
🌐 Industry
- Asset management sector benefits from rising mutual fund penetration and financialization of savings in India.
- Industry PE at 25.3 suggests NAM India trades at a premium, reflecting growth expectations and brand strength.
🔎 Conclusion
NAM India demonstrates strong fundamentals with high return ratios, low debt, and consistent earnings growth. However, valuations are stretched with high P/E and P/B multiples. Investors may consider entering around 800–830 ₹ for long-term holding, with staggered buying to manage valuation risks. The company remains strategically well-positioned to benefit from India’s growing asset management industry.
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