Nippon Life India Asset Management Limited Fundamental Analysis (BSE: NAM-INDIA.BO)
Nippon Life India Asset Management Limited Fundamental Analysis (BSE: NAM-INDIA.BO)
Nippon Life India Asset Management Limited (BSE: NAM-INDIA.BO) shows strong financial fundamentals with a PE ratio of 44.96, profit margin of 53.81%, and ROE of 36.21%. The company generates $30.5B in annual revenue with strong year-over-year growth of 35.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NAM-INDIA.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakNAM-INDIA.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakNAM-INDIA.BO trades at a premium to fair value.
Growth Score
ExcellentNAM-INDIA.BO delivers strong and consistent growth momentum.
Financial Health Score
ModerateNAM-INDIA.BO shows balanced financial health with some risks.
Profitability Score
ExcellentNAM-INDIA.BO achieves industry-leading margins.
Key Financial Metrics
Is NAM-INDIA.BO Expensive or Cheap?
P/E Ratio
NAM-INDIA.BO trades at 44.96 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NAM-INDIA.BO's PEG of 2.18 indicates potential overvaluation.
Price to Book
The market values Nippon Life India Asset Management Limited at 15.83 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.20 times EBITDA. This signals the market has high growth expectations.
How Well Does NAM-INDIA.BO Make Money?
Net Profit Margin
For every $100 in sales, Nippon Life India Asset Management Limited keeps $53.81 as profit after all expenses.
Operating Margin
Core operations generate 67.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.21 in profit for every $100 of shareholder equity.
ROA
Nippon Life India Asset Management Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Life India Asset Management Limited produces operating cash flow of $5.85B, showing steady but balanced cash generation.
Free Cash Flow
Nippon Life India Asset Management Limited generates strong free cash flow of $5.51B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.62 in free cash annually.
FCF Yield
NAM-INDIA.BO converts 0.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
24.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How NAM-INDIA.BO Stacks Against Its Sector Peers
| Metric | NAM-INDIA.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.96 | 20.76 | Worse (Expensive) |
| ROE | 36.21% | 644.00% | Weak |
| Net Margin | 53.81% | -1529.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 830.27 | Weak Liquidity |
| ROA | 0.00% | -577.00% (disorted) | Weak |
NAM-INDIA.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Life India Asset Management Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
76.73%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
195.26%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
88.99%
Industry Style: Value, Dividend, Cyclical
High Growth