Nippon Life India Asset Management delivered a strong performance in the last quarter, with a 2% increase in core income driven by a 2.7% rise in revenue. This growth was attributed to improved blended yields.

The company's equity share increased by 1.3% compared to the previous quarter, while debt and liquid assets experienced declines of 50 and 76 basis points, respectively. The management emphasized a focus on profitability rather than market share, which may impact net flows if yields are diluted.

The firm has successfully increased its net equity flow market share from 5.3% in FY23 to 12% in FY24, with equity market share expanding to 7.0%, reflecting an 8 basis point increase compared to the previous quarter. Analysts have raised core earnings per share (EPS) estimates for FY25E and FY26E by 10% and 5% respectively, following an upgrade in the industry's closing equity assets under management (AuM) forecast from 27% to 40%. A robust core profit after tax (PAT) compound annual growth rate (CAGR) of 28% is expected from FY24 to FY26E.

The stock is currently valued at 28 times the projected core EPS for September 2026, with a target price increase to Rs 820 from Rs 700, and a 'BUY' rating is maintained.