Nippon Life India Asset Management Analysis

dividend

Pros

• Dividends paid are covered by earnings (1.4x coverage).
• Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
• Nippon Life India Asset Management's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Nippon Life India Asset Management has only been paying a dividend for 2 years, and since then dividends per share have fallen.
• Nippon Life India Asset Management has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• Nippon Life India Asset Management's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Nippon Life India Asset Management's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Nippon Life India Asset Management's earnings are expected to exceed the low risk growth rate next year.
• Nippon Life India Asset Management's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• Nippon Life India Asset Management is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Capital Markets industry average.
• An improvement in Nippon Life India Asset Management's performance (ROE) is expected over the next 3 years.
• Nippon Life India Asset Management's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Nippon Life India Asset Management is expected to decrease over the next 2 years.
• Nippon Life India Asset Management's earnings are expected to grow by 16.4% yearly, however this is not considered high growth (20% yearly).
• Nippon Life India Asset Management's earnings growth is positive but not above the India market average.
• Nippon Life India Asset Management's net income is expected to increase but not above the 50% threshold in 2 years time.
• Nippon Life India Asset Management's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Nippon Life India Asset Management's revenue is expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Nippon Life India Asset Management is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Nippon Life India Asset Management is profitable, therefore cash runway is not a concern.
• Nippon Life India Asset Management is profitable, therefore cash runway is not a concern.
• Nippon Life India Asset Management has no debt, it does not need to be covered by operating cash flow.
• Nippon Life India Asset Management has no debt, it does not need to be covered by short term assets.
• Nippon Life India Asset Management's cash and other short term assets cover its long term commitments.
• Nippon Life India Asset Management has not taken on any debt in the past 5 years.
• Nippon Life India Asset Management has no debt, therefore coverage of interest payments is not a concern.
• Nippon Life India Asset Management has no debt.
• Low level of unsold assets.

Cons

management

Pros

• The tenure for the Nippon Life India Asset Management board of directors is about average.
• The average tenure for the Nippon Life India Asset Management management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Sundeep's remuneration is higher than average for companies of similar size in India.
• Sundeep's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

Pros

Cons

• Nippon Life India Asset Management is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.

past

Pros

• Nippon Life India Asset Management's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
• Nippon Life India Asset Management used its assets more efficiently than the IN Capital Markets industry average last year based on Return on Assets.

Cons

• Nippon Life India Asset Management's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Nippon Life India Asset Management's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Nippon Life India Asset Management has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Nippon Life India Asset Management's 1-year earnings growth is negative, it can't be compared to the IN Capital Markets industry average.

value

Pros

• 540767 outperformed the Capital Markets industry which returned -21% over the past year.
• 540767 outperformed the Market in India which returned -14.5% over the past year.
• BSE:540767 is up 13% outperforming the Capital Markets industry which returned 8.7% over the past month.
• BSE:540767 is up 13% outperforming the market in India which returned 8% over the past month.

Cons

• Nippon Life India Asset Management's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Nippon Life India Asset Management's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Nippon Life India Asset Management is overvalued based on assets compared to the IN Capital Markets industry average.
• Nippon Life India Asset Management is poor value based on expected growth next year.
• Nippon Life India Asset Management is overvalued based on earnings compared to the IN Capital Markets industry average.
• Nippon Life India Asset Management is overvalued based on earnings compared to the India market.