Mid-cap stocks surge 6% after company’s net profit jumps 40% year-on-year

Shares of the asset manager rose 6 percent after the company’s net profit and revenue rose 41 percent and 43 percent year-on-year, respectively, in the first quarter of its fiscal 2025.

Nippon Life India Asset Management Ltd has a market capitalization of Rs 41,055.15 crore, the shares were trading at Rs 649.85 per share, up about 2.41 percent from the previous price of Rs 634.55 per piece.

Reason for increase:-

According to the company filing, Nippon Life India Asset Management Ltd’s revenue increased 8 percent QoQ from Rs.468 crore in Q4FY24 to Rs.505 crore in Q1FY25. Further, revenue increased 43 percent YoY from Rs.354 crore in Q1FY24 to Rs.505 crore in Q1FY25.

Nippon Life India Asset Management Ltd’s net profit declined 3 percent quarter-on-quarter to Rs. 332 crore in Q1FY25 from Rs. 343 crore in Q4FY24. Moreover, net profit increased by 40% year-on-year, from Rs. 236 crores in Q1FY24 to Rs. 332 crores in Q1FY25.

Notable return:-

The stock has given a return of 33.29 percent in the last six months and a multi-bagger return of 105 percent in a year. If an individual investment of Rs. 1 lakh in the company would be worth Rs. 2.05 lakh in a year.

Ratio Analysis and Shareholder Pattern:-

The company’s critical ratios show that return on equity increased from 20.57 percent in FY22-23 to 27.87 percent in FY23-24, while return on invested capital increased from 25.37 percent to 32.75 percent. The net profit margin (NPM) for FY23-24 is 67.32 percent.

In the company’s recent shareholding pattern, the company’s promoters own 72.66 percent, while retail shareholders own 6.43 percent stake in the company and foreign institutional investors own 6.56 percent stake.

Company Profile:-

The principal activity of Nippon Life India Asset Management Ltd is to act as an investment manager for Nippon India Mutual Fund. The company is engaged in the business of managing mutual funds, such as exchange-traded funds (ETFs); managed accounts, including portfolio management services, alternative investment funds and pension funds.

Written by:- Abhishek Singh

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