Nippon Life India Asset Management (NAM IN) – Q4FY26 Result Update – Gold/silver ETF a hedge to equity exposure – BUY
Published on 28 Apr 2026
NAM saw a strong quarter as core income at INR 7.4bn was a 5.6% beat due to 3.2% higher revenue. Despite a steep equity correction in Mar’26, blended yield increased by 0.5bp QoQ to 40.7bps (PLe 39.5bps) owing to strong QAAuM growth in higher yielding gold/silver ETF; its share increased QoQ to 12.2% from 7.9%. Market share in SIP (11-12%) and net equity flows (10% in FY26) remain higher than stock equity AuM market share (7.2% in FY26). With new ESOP scheme announced, we raise opex for FY27/28E by avg. 2% that would be offset by upgrade in revenue due to higher ETF yields; our core PAT is higher by avg. 2.3%. We tweak multiple to 35x on Mar’28 core EPS from 33x and raise TP to INR 1,050 from INR 985. Retain ‘BUY’.
