1QFY27: Fundamentals intact, investing for future

Research evidence excerpt

1QFY27: Fundamentals intact, investing for future

Nomura | Nippon Life India Asset Management 23 July 2026

Company profile

Nippon Life India Asset Management (NAM) was incorporated in 1995 as a joint venture between Reliance Capital (42.9% stake) and Nippon Life

Insurance (42.9% stake) under the name of ‘Reliance Nippon Life Asset Management’. Subsequently, the company’s name was changed to ‘Nippon

Life Asset Management’ in Jan-20, as Reliance Capital sold its entire stake in the company. Company’s principal activity is to act as investment

manager to Nippon India MF and provide PMS and advisory services to clients. It is also present in AIF and off-shore business via its subsidiaries.

Valuation Methodology

We derive our target price of INR1,230 for NAM AMC, valuing the company using a DCF-based model, implying 34x Jun-28F P/E. The benchmark

index for the stock is Nifty 50.

Risks that may impede the achievement of the target price

Key downside risks to our valuation are - a) decline in market share led by increased competition or fund underperformance, b) sharper decline in

yields driven by regulatory interventions and higher than anticipated growth in the low yielding passive segment , c) it has high exposure to small

and midcap funds (~40% of its equity AUM) making its earnings more vulnerable to market fluctuations, and d) churn in top management.

ESG

NAM India is a signatory to the United Nations Principles for Responsible Investment (UN PRI), a network of investor signatories across the world

incorporating Responsible Investment practices to create long term value and manage risks better. Further, it is cognizant of the risks associated

with management of data supplied to the organization by customers and ensures complete security of the same.