Nippon Life Q4 Results Review - Healthy Share In Equity Flows Sustains: Yes Securities

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Revenue yield erosion continues to offset some of the benefit from improved flows:The net flows into equity and hybrid category for the mutual funds industry was strong in Q4 FY24. Nippon Life India Asset Management Ltd. held double digit market share in net flows for Equity and Hybrid category in Q4 FY24. Its Equity assets under management (excluding-exchange traded fund) market share has also improved by 9 basis points QoQ and stood at 6.76%. The share of Equity QAAUM in total QAAUM for the quarter has improved by 60 bps QoQ. However, due to telescopic pricing formula as prescribed by Securities and Exchange Board of India, the blended yield for Q4 FY24 was down by around 1 bp QoQ.NAM has made a new employee stock ownership plan grant and half of its impact would be felt in FY25:The employee expense is down by -1.4% QoQ, driven lower by change in provisions on PLI. The employee stock ownership plan cost in FY24 was around Rs 70 million. NAM has approved a grant of ESOPs which will cost around Rs 850-900 million over four years. Around, 49-50% cost for these new ESOPs granted would fall in FY25. Also, the management has guided that total operating expense in FY25 would increase by around 8-10% YoY, excluding the ESOP cost.We maintain 'Add' rating on Nippon Life with a revised price target of Rs 650:We value Nippon Life at 35 times FY26 earning price, at which the stock would trade at a price book of 9.3 times..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Nippon Life Q4 Results Review - Healthy Share In Equity Flows Sustains: Yes Securities

Operating profit margin for the quarter, at 62.1%, was up 87 basis points QoQ and 214 bps YoY.

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Nippon Life Q4 Results Review - Healthy Share In Equity Flows Sustains: Yes Securities

Operating profit margin for the quarter, at 62.1%, was up 87 basis points QoQ and 214 bps YoY.

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