Target: ₹1,040
CMP: ₹834.20
Nippon Life India AMC (NAM India) continues to deliver industry-leading market share gains, with MF quarterly average asset under manaement of ₹7 lakh crore (+23 per cent y-o-y) and overall share at a five-year high of 8.7 per cent. It is underpinned by steady net inflows, robust SIP momentum, and a favourable equity mix (47 per cent in Dec’25), driving the highest FY26YTD equity share accretion in the industry to 7.1 per cent (+11bp y-o-y).
NAM India reported stable blended yields of 37bp in 3Q (equity: 53bp) despite rising passive contribution, supported by a healthy equity mix and traction in high-yielding commodity ETFs. Management continues to guide for an annual compression of 1-2bp due to telescopic pricing, to be offset by diversified retail flows, SIP growth, and product innovation.
The company is scaling up its alternatives, Gift City, and offshore platforms, with cumulative AIF commitments of ₹892 crore, Gift City AUM of ₹370 crore, and offshore AUM of ₹18,000 crore, positioning these verticals as incremental growth drivers beyond the core MF franchise amid rising institutional and global investor participation.
We expect a CAGR of 16/17/18 per cent in revenue/EBITDA/core PAT over FY26-28E. We reiterate a Buy rating on the stock with a target price of ₹1,040, premised on 38x core FY28E earnings.