Nippon Life's market share for quarterly average assets under management rose 30bp YoY to ~8.3%, with equity market share rising 10bp YoY to ~6.9%. ETF market share continues to surge and was up 236bp YoY at 19.1% with Nippon Life maintaining a dominant position in this space. The share of Equity/ ETFs in MF AUM improved 60bp/170bp YoY to 49.8%/ 27.6%. However, the share of debt/liquid declined to 15.0%/7.6% and a softer interest rate regime will drive growth for this segment.
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Motilal Oswal Report
Nippon Life India Asset Management Ltd. has shown continued market share expansion, especially in passives on the back of improvement in fund performance, maintaining investor stickiness and product innovation. While the yields on the equity segment are expected to decline at a relatively moderate pace, the decline in overall yields will be protected by strong net flows.
We broadly retain our earnings estimates, keeping our AUM assumptions intact and accounting for expense growth according to the management guidance. We reiterate our Buy rating on the stock with a target price of Rs 750, based on 34 times FY27E core earnings per share.
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