Nippon Life Gets 'Buy' From Motilal Oswal After Q3 Results, Sees 30% Upside — Here's Why

Nippon Life's yields on the equity segment are expected to decline at a relatively moderate pace compared to the past couple of years. The decline in overall yields will be protected by strong net flows and the correction in commission structure..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. .Motilal Oswal Report.Nippon Life India AMC Ltd.’s operating revenue came in at Rs 5.9 billion (in line), resulting in a growth of 39% YoY and 3% QoQ. Yields declined to 41.3 basis points in Q3 FY25 from 41.6 bp in Q2 FY25 and 44.8 bp in Q3 FY24. For 9M FY25, revenue came in at Rs 16.6 billion, recording a growth of 42% YoY. Total opex grew 23% YoY and 3% QoQ to Rs 2 billion. Resultant Ebitda stood at Rs 3.9 billion in Q3 FY25, +49% YoY (in line). Ebitda margin improved 440 bp YoY to 65.6%. For 9MFY25, Ebitda grew 53% YoY to Rs 10.8 billion. PAT stood at Rs 3 billion in Q3 FY25; PAT rose 4% YoY but declined 18% QoQ (9% miss), mainly due to the MTM impact on investments, which led to lower-than-expected other income. In 9MFY25, PAT grew 29% YoY to Rs 10 billion.Investments in talent and technology are expected to continue, and management has guided an expense growth of 15-17%, excluding ESOP.  We cut our FY25/FY26/FY27 earnings estimates by 4%/4%/3% mainly on account of lower-than-expected other income. However, due to continued strong fund performance, upside from international flows, and rising market share, we reiterate our Buy rating on the stock with a target price of Rs 850, based on 36 times Sep’26E Core EPS..Click on the attachment to read the full report:.UltraTech Cement, BPCL, Dr. Reddys, Cyient, Ujjivan Small Finance Bank Q3 Results Review — HDFC Securities.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 Gets 'Buy' From Motilal Oswal After Q3 Results, Sees 30% Upside — Here's Why

Due to continued strong fund performance, upside from international flows, and rising market share, Motilal Oswal reiterates Buy rating on the stock.

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