Nippon Life India Asset Management has announced strong financial results, with core revenues increasing by 44% year-on-year and 13% quarter-on-quarter. This growth was primarily driven by a robust 57% year-on-year increase in mutual fund assets under management (AUM).

The company's overall AUM reached Rs 6.5 lakh crore, representing a 50% increase compared to the previous year. The blended revenue yields remained stable at 42 basis points quarter-on-quarter, but decreased by 4 basis points year-on-year. Core profit before tax (PBT) saw a significant surge of 57% year-on-year and 19% quarter-on-quarter.

The market share in mutual fund AUM also improved, rising by 9 basis points quarter-on-quarter to 8.3%. Similarly, the equity market share (excluding ETFs) increased by 8 basis points to 6.96%. Equity AUMs experienced substantial growth of approximately 70% year-on-year and 16% quarter-on-quarter. Systematic Investment Plan (SIP) flows also saw a 20% quarter-on-quarter increase, with market share improving to around 12-13%, up from 10% year-on-year.

Sharekhan maintains a "Buy" rating on the stock with a target price of Rs 840, noting that it currently trades at 30.3x, 27.4x, and 23.6x its estimated earnings per share for FY2025, FY2026, and FY2027, respectively.