Domestic brokerage firm Motilal Oswal, in its latest note, has maintained an optimistic outlook on Nippon Life India AMC, keeping its buy rating unchanged with a target price of ₹930 apiece, a record target for the stock. The target price also indicates an 15.4% upside for the stock.
The brokerage highlighted the company’s rapid growth in the domestic mutual fund industry, with expanding market share supported by consistent net inflows, strong SIP traction, and a healthy equity mix.
According to Motilal, the company has delivered the fastest Quarterly Average Assets Under Management (QAAUM) growth in the industry, rising 27% YoY to ₹6.1 trillion as of June 2025.
This growth has lifted the company’s overall market share to 8.5%, an increase of 23 basis points. Its SIP AUM rose 27% YoY to ₹1.5 trillion, with 75% of SIPs below ₹10,000, a structure that ensures stability and high retention.
The brokerage noted that NAM remains one of the largest ETF players, with an AUM of ₹1.7 trillion, accounting for 52% of industry folios and 51% of ETF volumes on the BSE and NSE. As of June 2025, NAM’s Gold ETF ranked among the world’s top 10 by AUM.
Motilal also underscored the company’s progress in scaling its alternatives and offshore businesses, with ₹81 billion in AIF commitments and ₹166 billion in offshore AUM. The brokerage believes these segments will serve as incremental growth levers beyond the core mutual fund franchise, gaining increasing traction from institutional and global investors.
“NAM is strategically scaling its Specialized Investment Fund (SIF) platform as a high-potential standalone business focused on differentiated, alpha-generating strategies. Backed by a dedicated team and strong management commitment, the SIF vertical is being positioned as a key long-term growth engine,” said the brokerage.
It also pointed out that the company’s mutual fund segment performance reflects its focused strategy on scaling retail participation, driving product innovation, and enhancing operational efficiency, positioning it as a credible compounding franchise in the Indian asset management industry.
Nippon Life Asset Management shares deliver 250% return since March 2023
The company’s shares have been on a steady uptrend, ending the past four months in the green. Even in July, they managed to close higher despite a sharp sell-off in the broader market, while also hitting a fresh all-time high of ₹877.65.
This rally has driven a 255% gain from the March 2023 lows. During this period, the stock finished 80% of the months in positive territory, with its strongest month recorded in April 2025, a 25% gain.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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