Reliance Nippon Asset Management
Content:
- About
- Products
- Shareholding Pattern
- Pros and Cons
- Financial Analysis
- Historical Return chart
- Return Compare to NSE and BSE chart
- Return Compare to Competitors
- Moving Average Price
- Should You Invest or Not
- Conclusion
Reliance Nippon: Reliance Nippon Asset Management Company Limited (RNAM) is the asset manager of Nippon India Mutual Fund. The promoters of the Reliance Nippon are Reliance Capital and Nippon Life Insurance Company (A Japanese company) and currently, they hold around 79.28 per cent of the total sum of issued and paid-up equity capital. Equity Shares of Reliance Nippon are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited.
Products of Reliance Nippon Asset management:
- Any Time Money Card
- Salary Advantage
- SIP Insure
- Smart Step
- Simply Save
Shareholding Pattern:
Shareholding pattern of Reliance Nippon Asset Management is as follows:
| Category | No. of Shares | Percentage |
| Promoters | 26,176,019 | 4.28 |
| Foreign Promoters | 459,028,095 | 75.00 |
| Others | 29,195,569 | 4.77 |
| Foreign Institutions | 28,385,077 | 4.64 |
| General Public | 25,719,628 | 4.20 |
| Financial Institutions | 25,206,057 | 4.12 |
| NBFC and Mutual Fund | 18,327,015 | 2.99 |
While analysing the shareholding pattern we can see that foreign promoters have the major share. One of the main reason behind holding the major is that reliance Nippon asset management is managed by Japanese company Nippon. Apart from this, the company has investors from different segments that is good for any company.
Pros and Cons of Reliance Nippon Asset Management:
Pros:
- Reliance Nippon is virtually debt-free
- And it is maintaining a healthy dividend payout of 52.04%
- Company’s promoters holding has increased by 4.28%
Cons:
- The stock price of Reliance Nippon is trading at 7.97 times than its book value
Financial Analysis:
|
Market cap: 20,929 Cr. |
Current Price: 341.75 |
52 Week High/Low: 386.5/120.2 |
|
Book Value: 42.89 |
Stock PE: 40.03 |
Dividend Yield: 1.76% |
|
ROCE: 28.38% |
ROE: 19.70% |
Face Value: 10 |
- Market Capitalization: According to market capitalization Reliance Nippon Asset Management comes under the Mid-Cap fund.
- 52 Week High/Low: Company has made its year low in January 2019. After that stock has shown continuous growth and made its all-time high in last week.
- Dividend Yield: 1.76% of dividend yield is very good for the investors.
- Stock P/E: P/E is also good. Means, investors have to pay only 40.3 rupees to earn 1 rupee profit.
- ROCE and ROE: Company’s ROCE and ROE is also good from an investment point of view.
Historical Return chart:
Return Compare to NSE and BSE chart:
It is completely clear in this graph that how the reliance nippon asset management has performed. In the last one year, while Sensex and BSE have given the return of 16.89% and 9.66% respectively. On the other hand, Reliance Nippon Asset Management has given a huge return to its investors. People who have invested their money in Reliance Nippon Asset Management this January has doubled their money within a year.
Return Compare to Competitors:
|
|
1D |
1W |
1M |
1Y |
|
HDFC AMC |
-0.46% |
2.24% |
-14.82% |
115% |
|
Reliance Nippon |
-1.43% |
-0.25% |
-10.24% |
112.53% |
HDFC AMC is the direct competitor of Reliance Nippon Asset. Currently, HDFC AMC is a much larger company than Reliance Nippon compare to market capitalization but if we see the yearly return of both the company then both are almost equal to each other.
Both companies have their own pros and cons, Reliance Nippon is much-valued stock than HDFC AMC. But, if we talk about the brand value than HDFC AMC has much more value than Reliance Nippon.
Moving Average Price:
|
DAYS |
AVERAGE PRICE |
|
5 Day |
341.45 |
|
20 Day |
350.23 |
|
50 Day |
336.01 |
|
100 Day |
293.98 |
|
200 Day |
250.61 |
When we compare the moving average price of 200/100/50/20/5 days, we can see that the price of the stock had increased continuously in a positive manner since the last one year. But from last 10 days stock has become slower, that is why the last 5 days moving average has lower than 20 days.
Should You Invest or Not?
Investment is not just the subject to market risk but also a personal risk. Any financial advisor or financial firm can advise you or guide you, but the investment is your choice. Currently, the company’s management is in good hand, virtually debt-free company. If we talk about the future growth of Reliance Nippon and Asset Management Company then it is bright. In the last few years, all the companies that are dealing with asset management and life insurance have shown extraordinary growth in their price.
The main reason for the growth of asset management and life insurance company is that the market is bullish on these sectors. Apart from this, another reason is that the less penetration of mutual funds and life insurance in India. So, the market has a hope that very soon these two sectors will start booming.
Conclusion:
Reliance Nippon Asset Management seems this the emerging multi-bagger stock for upcoming future and current market conditions also support this. The Indian government has an aim to make India a five trillion economy by 2024 and the government is more focused on this. You must have guessed that the ads of mutual funds are coming frequently on television that was not earlier. People are getting aware of this and companies that are dealing with asset management will be definitely benefited. So, in a single word, the future of this sector is bright.
