Mehabe score: 4 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Nippon Life India Asset Mgt. is engaged in managing mutual funds including exchange traded funds (ETFs); managed accounts, including portfolio management services, alternative investment funds and pension funds; and offshore funds and advisory mandates.(Source : 202003 Annual Report Page No: 01)Site:NAM-INDIAMain Symbol:NAM-INDIA
Stock trades at 419.0, above its 50dma 366.69. It also trades above its 200dma 334.23. The stock remains bullish on techicals
The 52 week high is at 439.35 and the 52week low is at 249.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 73.91%
Weakness
– Stock is trading at 8.35 times its book value
-The company has delivered a poor sales growth of 1.59% over past five years.
Competition
– The industry trades at a mean P/E of 25.8x. SBI Cards trades at the industry’s max P/E of 94.63x. NAM-INDIA trades at a P/E of 38.1x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 6.0. NAM-INDIA has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 4.7%. The max 1- month return was given by Nippon Life Ind.: a return of 17.52 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 302.0 cr compared to Rs 233.0 cr for period ended Jun 2020, a rise of 29.6%
Operating Profits reported at Rs 177.0 cr for period ended Jun 2021 vis-vis 108.0 for period ended Jun 2020 .
Operating Margins expanded 1225.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.94 compared to Rs 2.71 for previous quarter ended Mar 2021 and Rs 2.55 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1131.0 cr for period ended TTM vis-vis sales of Rs 1419.0 cr for the period ended Mar 2021, a fall of 25.5%. The 3 year sales cagr stood at -11.8%.
Operating margins shrank to 55.0% for period ended TTM vis-vis 64.0% for period ended Mar 2021, contraction of 900.0 bps.
Net Profit reported at Rs 706.0 cr for period ended TTM vis-vis sales of Rs 680.0 cr for the period ended Mar 2021, rising 3.7%.
Company recorded a healthy Net Profit CAGR of 13.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 24.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 43% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 64% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 6.21% vis-vis 5.92% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 12.1% vis-vis 12.92% for Mar 2021
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 73.91% – Stock is trading at 8.35 times its book value
-The company has delivered a poor sales growth of 1.59% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 366.69 and is trading at 419.0, thus bullish price action wise.
