NAM-INDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.2

📊 Financial Overview

• Profitability: PAT at ₹338 Cr, slightly down from ₹385 Cr QoQ; EPS at ₹20.7
• Margins: ROCE at 41.6%, ROE at 32.0% — excellent capital efficiency
• Debt Profile: Debt-to-equity ratio of 0.02 — virtually debt-free
• Dividend Yield: 1.96% — attractive and consistent

📈 Valuation Metrics

• P/E Ratio: 42.4 — above industry average of 30.7
• P/B Ratio: ~13.4 — premium valuation relative to book value ₹65.4
• PEG Ratio: 2.04 — suggests valuation is ahead of growth
• Intrinsic Value: Estimated around ₹820–₹850 based on earnings and sector multiples

🏢 Business Model & Competitive Edge

• Core Operations: NAM India (Nippon Life India Asset Management) is a leading asset management company offering mutual funds, PMS, and offshore advisory
• Moat: Strong brand, wide distribution network, and strategic partnership with Nippon Life
• Growth Drivers: Rising retail participation, SIP inflows, and expansion in passive and international products

📌 Entry Zone Recommendation

• Suggested Entry: ₹820–₹850 — near intrinsic value and DMA50
• Technical Indicators: RSI at 46.9 (neutral), MACD positive — stable momentum

📈 Long-Term Holding Guidance

• Hold for long-term if accumulated near support; ideal for investors seeking exposure to India’s growing financial savings market
• Monitor AUM growth and fee compression trends

✅ Positive

• Strong ROE and ROCE with minimal debt
• Consistent dividend payout
• FII holding increased by 0.06%
• Robust brand and distribution strength

⚠️ Limitation

• High P/E and PEG ratios
• QoQ PAT decline of 1.54%
• DII holding declined by 0.50%

📰 Company Negative News

• Q2 FY26 earnings slightly missed estimates due to lower equity market volumes and fee pressure

🌟 Company Positive News

• Strong SIP inflows and growth in passive fund AUM; new ETF launches gaining traction

🏭 Industry

• Asset management industry P/E at 30.7 — NAM India trades at a premium
• Sector driven by financialization of savings, regulatory support, and rising retail investor base

🧾 Conclusion

• NAM India is a well-managed asset management firm with strong profitability and brand equity
• Accumulate near support zones for long-term compounding; monitor AUM trends and fee dynamics