- 29 Apr 2025
- ICICIdirect Research
NIPPON AMC BROADLY REPORTED STEADY SET OF Q4 RESULT
NAM-INDIA - 749 Change: 21.10 (2.90 %)News: Nippon AMC broadly reported steady set of Q4 result. Market share was recorded at 8.26%, down 5 bps QoQ. However, in FY25, the company has gained 29 bps market share. MF AUM de-grew 2.2% QoQ to ₹ 5.6 tn, a growth of 29.2% YoY. Revenue yield was down 1.5 bps QoQ at 39.8 bps mainly owing to decline in equity mix proportion in AUM. EBITDA margin declined 115 bps QoQ to 64% as topline witnessed de-growth. PAT as % of AUM was steady at 21 bps. Other income recovered modestly from Rs 15 cr to Rs 23 cr QoQ, aided by gains in debt funds owing to fall in yields.
View: Nippon AMC has been among the fastest growing AMC among top 10 AMCs in past couple of years. Its SIP market share doubled from in 5 years to 10.2% in FY25. Even sequentially there was improvement of 17 bps. Besides, Nippon is the market leader on passive side and has strong alternate book. The company is a play on structural growth in Indian asset management industry. Going ahead, the stock could be prone to market volatility but current valuations offer decent risk-reward from medium term perspective.
Impact: Neutral