Nuvama Wealth Management Limited (NUVAMA) AI Stock Analysis

• Market Cap: ₹222.42B
• Dividend Yield: 3.33%
• Average Volume (3M): 6.53K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.78
• Revenue Growth: 25.43%
• EPS Growth: 40.32%
• Country: IN
• Employees: 3,104
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 73.36
• Shares Outstanding: 36,043,613
• 10 Day Avg. Volume: 5,749
• 30 Day Avg. Volume: 6,525
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹8,616.50
• Price Target Upside: 33.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ₹7,443.00 ▲(15.65% Upside)

Nuvama Wealth Management Limited's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability. However, technical indicators suggest a bearish trend, and cash flow management remains a challenge. The valuation is fair, with an attractive dividend yield. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective client acquisition strategies, supporting long-term business viability.

Profitability

High gross profit margins reflect efficient operations and pricing power, which can sustain profitability in the long term.

Efficient Use of Equity

Strong return on equity suggests effective management and strategic use of capital, enhancing shareholder value over time.

Negative Factors

Cash Flow Management

Negative free cash flow indicates potential liquidity issues, which can limit growth investments and operational flexibility.

Reliance on Liabilities

High reliance on liabilities can increase financial risk, especially in volatile markets, impacting long-term financial stability.

Operational Expenses

High operational expenses can erode net margins, reducing overall profitability and limiting reinvestment potential.

Nuvama Wealth Management Limited Business Overview & Revenue Model

Company Description

Nuvama Wealth Management Limited (NUVAMA) is a financial services company specializing in wealth management and advisory services. It operates primarily in the financial services sector, offering a range of investment products and services tailored to affluent and high-net-worth individuals. NUVAMA provides comprehensive wealth management solutions that include investment advisory, portfolio management, financial planning, and access to a wide array of asset classes.

How the Company Makes Money

NUVAMA generates revenue through various streams primarily centered around its wealth management and financial advisory services. The company earns money by charging management fees on assets under management (AUM), which is a percentage of the total value of assets they manage for clients. Additionally, NUVAMA may also earn performance-based fees, which are contingent upon achieving specific investment returns or outperforming set benchmarks. The company also generates income from advisory services by providing financial planning and investment consulting to clients, for which they charge upfront or retainer fees. Other revenue streams include commissions from the sale of financial products such as mutual funds, insurance products, and structured investment products. Key partnerships with financial institutions and asset managers may also contribute to their earnings by enhancing their product offerings and expanding their client base.

Nuvama Wealth Management Limited Financial Statement Overview

Summary

Nuvama Wealth Management Limited demonstrates strong revenue growth and profitability, supported by high gross profit margins and efficient operations. The balance sheet shows effective use of debt, though a reliance on liabilities may be a concern. Cash flow management needs improvement, with negative free cash flow being a key area to address.

Income Statement

Nuvama Wealth Management Limited has shown strong revenue growth with a notable increase from 2024 to 2025. Gross profit margins are high, indicating effective cost management. However, the net profit margin is impacted by significant operational expenses, though it remains positive. The EBIT and EBITDA margins reflect solid operating performance, with a slight decrease in EBIT margin over the period.

Balance Sheet

The company's balance sheet is characterized by a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity is robust, reflecting efficient use of equity to generate profits. However, the equity ratio suggests a higher reliance on liabilities to finance assets, which could pose risks if not managed properly.

Cash Flow

Cash flow management remains a challenge for Nuvama, as evidenced by consistent negative free cash flow and operating cash flow. The operating cash flow to net income ratio indicates efficiency issues in converting net income into cash, though there is a slight improvement in free cash flow to net income ratio.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.91B	41.69B	25.70B	18.46B	15.65B	10.83B
Gross Profit	15.28B	29.59B	26.96B	18.46B	15.65B	10.83B
EBITDA	14.63B	14.24B	15.38B	78.11M	6.35B	8.54B
Net Income	9.12B	9.86B	6.25B	3.05B	8.57B	-4.83B
Balance Sheet
Total Assets	0.00	283.88B	203.87B	127.16B	105.98B	73.85B
Cash, Cash Equivalents and Short-Term Investments	0.00	216.69B	3.67B	7.88B	10.00B	3.35B
Total Debt	0.00	78.39B	35.53B	27.93B	16.59B	5.77B
Total Liabilities	-31.61B	248.95B	174.88B	104.57B	86.85B	57.76B
Stockholders Equity	31.61B	34.90B	28.95B	22.54B	19.13B	16.09B
Cash Flow
Free Cash Flow	0.00	-4.04B	-17.39B	-19.44B	-14.77B	-11.35B
Operating Cash Flow	0.00	-3.71B	-16.58B	-18.65B	-14.25B	-11.08B
Investing Cash Flow	0.00	-652.20M	-797.75M	-1.77B	-821.79M	-931.96M
Financing Cash Flow	0.00	6.01B	13.16B	18.25B	21.39B	8.47B

Nuvama Wealth Management Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6435.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NUVAMA, the sentiment is Neutral. The current price of 6435.7 is below the 20-day moving average (MA) of 6604.55, below the 50-day MA of 7038.77, and below the 200-day MA of 6477.85, indicating a bearish trend. The MACD of -195.86 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 24.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NUVAMA.

Nuvama Wealth Management Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOTILALOFS	76 Outperform	₹548.74B	19.67		0.55%	11.16%	-1.15%
BIRLAMONEY	73 Outperform	₹10.40B	14.01		―	4.68%	22.23%
SMCGLOBAL	71 Outperform	₹14.55B	11.88		1.75%	-1.20%	-41.78%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
NUVAMA	67 Neutral	₹222.42B	21.42		3.33%	25.43%	40.32%
EDELWEISS	60 Neutral	₹106.67B	26.10		1.30%	-4.82%	-7.73%
IFCI	46 Neutral	₹145.41B	43.89		―	-4.18%	109.86%

Nuvama Wealth Management Limited Corporate Events

Nuvama Wealth Management Concludes Income Tax Survey

Nuvama Wealth Management Limited announced that the Income Tax Department has concluded its onsite survey at the company’s registered office. The company cooperated fully with the authorities, providing necessary clarifications and information, which signifies its commitment to compliance and transparency. This development may impact the company’s operations by reinforcing its compliance practices and could influence stakeholder confidence.