Nippon Life India Asset Management Limited Just Missed Earnings - But Analysts Have Updated Their Models

Nippon Life India Asset Management Limited (NSE:NAM-INDIA) shareholders are probably feeling a little disappointed, since its shares fell 9.7% to ₹621 in the week after its latest third-quarter results. It was not a great result overall. While revenues of ₹6.0b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 10% to hit ₹4.58 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Nippon Life India Asset Management

Taking into account the latest results, the current consensus from Nippon Life India Asset Management's 20 analysts is for revenues of ₹29.0b in 2026. This would reflect a decent 16% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 16% to ₹24.28. In the lead-up to this report, the analysts had been modelling revenues of ₹28.7b and earnings per share (EPS) of ₹24.83 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹786, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Nippon Life India Asset Management analyst has a price target of ₹900 per share, while the most pessimistic values it at ₹700. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Nippon Life India Asset Management'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. It's clear that while Nippon Life India Asset Management's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nippon Life India Asset Management. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹786, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nippon Life India Asset Management going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Nippon Life India Asset Management that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.