Nippon Life India Asset Management Limited Just Recorded A 23% Revenue Beat: Here's What Analysts Think

Nippon Life India Asset Management Limited (NSE:NAM-INDIA) just released its latest quarterly results and things are looking bullish. Statutory earnings beat expectations, with revenues of ₹6.4b coming in a massive 23% ahead of forecasts, while earnings per share (eps) of ₹5.18 beat expectations by 3.6%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Nippon Life India Asset Management

Taking into account the latest results, the most recent consensus for Nippon Life India Asset Management from 14 analysts is for revenues of ₹25.1b in 2025. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 8.3% to ₹20.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹24.1b and earnings per share (EPS) of ₹19.45 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹707, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Nippon Life India Asset Management at ₹800 per share, while the most bearish prices it at ₹500. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Nippon Life India Asset Management's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nippon Life India Asset Management to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nippon Life India Asset Management following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹707, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Nippon Life India Asset Management analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Nippon Life India Asset Management that you need to take into consideration.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com