Nuvama Wealth Management Limited (NUVAMA) AI Stock Analysis

• Market Cap: ₹210.64B
• Dividend Yield: 1.91%
• Average Volume (3M): 7.28K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.80
• Revenue Growth: 16.97%
• EPS Growth: 20.99%
• Country: IN
• Employees: 3,104
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 14.20
• Shares Outstanding: 182,037,120
• 10 Day Avg. Volume: 7,550
• 30 Day Avg. Volume: 7,282
• PEG Ratio: 0.39
• Price to Book (P/B): 6.08
• Price to Sales (P/S): 9.91
• P/FCF Ratio: -52.46
• 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: ₹1,600.00
• Price Target Upside: 32.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 57.31
• Revenue Forecast (FY): ₹30.76B

• Rating: 76 Outperform
• Price Target: ₹1,305.00 ▲(8.20% Upside)
• Action: Upgraded Date: 10/22/25
• Date: Action: Upgraded 10/22/25

Nuvama Wealth Management Limited's stock is rated positively due to strong financial performance and bullish technical indicators. The company's revenue growth and profitability are significant strengths, although cash flow management needs improvement. The technical analysis supports a positive outlook, but caution is advised due to potential overbought conditions. The valuation is reasonable, with a fair P/E ratio and a decent dividend yield.

Positive Factors

Consistent revenue growth

Sustained double-digit revenue growth indicates expanding client relationships and product uptake within Nuvama's wealth and capital markets services. Over a 2–6 month horizon this underpins recurring fee and brokerage revenue, supporting margin stability and reinvestment capacity into client servicing and distribution.

High gross profit margins

Elevated gross margins reflect efficient cost structure and pricing power across advisory, distribution, and execution services. This structural profitability provides headroom to absorb seasonal revenue swings, invest in platforms and talent, and sustain operating margins over several months absent major market shocks.

Moderate leverage with strong ROE

A measured debt profile alongside robust ROE signals effective capital deployment and financial discipline. This balance limits refinancing pressure and preserves flexibility for strategic investments or selective buybacks, supporting longer-term profitability and resilience across typical industry cycles.

Negative Factors

Persistent negative free cash flow

Ongoing negative operating and free cash flow suggest earnings are not fully converting to cash, constraining internal funding for growth or capital returns. Over 2–6 months this can force higher reliance on external financing or limit strategic spending, raising execution risk if market conditions tighten.

Higher reliance on liabilities

A funding mix weighted toward liabilities increases sensitivity to interest costs and credit market conditions. In a medium-term window this structural funding risk can pressure margins and necessitate deleveraging or costly refinancing if rates rise or liquidity tightens, reducing strategic flexibility.

Revenue cyclicality tied to market activity

Material dependence on brokerage, distribution, and market-linked income means top-line and fee flows move with market volumes and investor activity. This structural cyclicality can produce multi-month earnings variability, making cash generation and budget planning more volatile across market cycles.

Nuvama Wealth Management Limited Business Overview & Revenue Model

Company Description

Nuvama Wealth Management Limited engages in wealth management, asset management, and capital markets businesses in India. The company provides debt advisory and clearing services; and portfolio management and investment advisory services. It is also involved in institutional and retail securities broking business; distribution of financial products; lending against securities; and investment management business for alternative investment funds. The company was formerly known as Edelweiss Securities Limited and changed its name to Nuvama Wealth Management Limited in August 2022. Nuvama Wealth Management Limited was incorporated in 1993 and is based in Mumbai, India.

How the Company Makes Money

NUVAMA primarily earns revenue by providing fee- and commission-based wealth and investment services and by generating market-linked income from client activity. Key revenue streams typically include: (1) Wealth management and advisory fees: recurring and/or transaction-linked fees for managing client relationships and providing investment advice, portfolio solutions, and related services for HNI/UHNI and family office clients. (2) Distribution income: commissions or trail fees for distributing third-party financial products such as mutual funds, insurance, alternative investment funds (AIFs), and other investment products (where permitted under applicable regulations and client arrangements). (3) Brokerage and transaction revenues: brokerage/fees from executing client trades and providing access to capital markets products and services; revenues generally scale with client activity and market volumes. (4) Interest and financing-related income: net interest income or financing spreads arising from permitted client financing activities (for example, margin funding or other collateralized financing products) and interest on balances, subject to the company’s risk management and regulatory constraints. (5) Other service and operating income: fees from ancillary client services and platform/service charges that support wealth and capital markets offerings. Specific breakdown by segment, the exact contribution of each stream, and details of significant partnerships are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.59B	21.40B	17.38B	13.23B	15.65B	10.83B
Gross Profit	11.93B	7.53B	6.38B	4.13B	15.65B	10.83B
EBITDA	20.96B	21.95B	15.34B	8.74B	6.35B	8.54B
Net Income	10.26B	9.86B	6.25B	3.05B	8.57B	-4.83B
Balance Sheet
Total Assets	242.56B	283.88B	203.87B	127.16B	105.98B	73.85B
Cash, Cash Equivalents and Short-Term Investments	140.10B	220.96B	139.24B	66.33B	10.00B	3.35B
Total Debt	89.75B	78.39B	67.46B	53.98B	16.59B	5.77B
Total Liabilities	204.64B	248.95B	174.88B	104.57B	86.85B	57.76B
Stockholders Equity	37.90B	34.90B	28.95B	22.54B	19.13B	16.09B
Cash Flow
Free Cash Flow	-10.58B	-4.04B	-17.39B	-19.44B	-14.77B	-11.35B
Operating Cash Flow	-10.54B	-3.71B	-16.58B	-18.65B	-14.25B	-11.08B
Investing Cash Flow	-1.03B	-652.20M	-797.75M	-1.77B	-821.79M	-931.96M
Financing Cash Flow	8.63B	6.01B	13.16B	18.25B	21.39B	8.47B

Nuvama Wealth Management Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1206.15
• 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 Negative. The current price of 1206.15 is below the 20-day moving average (MA) of 1241.98, below the 50-day MA of 1330.79, and below the 200-day MA of 1392.23, indicating a bearish trend. The MACD of -44.40 indicates Positive momentum. The RSI at 32.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
NUVAMA	76 Outperform	₹210.64B	26.40	―	1.91%	16.97%	20.99%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SMCGLOBAL	66 Neutral	₹13.54B	15.62	―	0.70%	-5.03%	-54.73%
MOTILALOFS	65 Neutral	₹410.26B	22.71	―	0.57%	-14.24%	-40.53%
BIRLAMONEY	63 Neutral	₹6.51B	14.15	―	―	-6.37%	-24.10%
EDELWEISS	55 Neutral	₹102.60B	9.45	―	1.37%	-19.77%	-11.03%
IFCI	55 Neutral	₹148.32B	-220.42	―	―	-12.62%	175.71%

Nuvama Wealth Management Limited Corporate Events

Nuvama Subsidiary Fined by NSE for Client-Related Compliance Lapses

Nuvama Wealth and Investment Limited, a wholly owned subsidiary of Nuvama Wealth Management, has been penalized Rs 1,00,000 by the National Stock Exchange of India following a limited purpose inspection tied to client-related processes and complaints. The company has stated that the penalty will not affect its financials or operations and is preparing a review application to NSE seeking a waiver of the disciplinary action, signaling an intent to contest the finding while committing to prevent future non-compliance.

Nuvama Subsidiary Gets NSE Warning Letter With No Financial Impact

Nuvama Wealth Management Limited has disclosed that its wholly owned subsidiary, Nuvama Wealth and Investment Limited, received a warning letter from the National Stock Exchange of India. The communication followed a limited purpose inspection conducted in July 2025 related to NWIL’s operational submissions, with NSE advising the subsidiary to exercise greater care and avoid recurrence of the cited observations.

The company emphasized that the NSE warning carries no impact on the financials, operations, or other activities of Nuvama or its subsidiaries and associates. The disclosure under securities listing regulations signals that the matter is being treated as a compliance reminder rather than a punitive action, suggesting limited immediate implications for shareholders and clients but underscoring ongoing regulatory scrutiny of market intermediaries’ operational practices.

ICRA Upgrades Nuvama Wealth Ratings, Affirms Top Short-Term Grades Across Group

Nuvama Wealth Management Limited announced that rating agency ICRA has upgraded the company’s issuer rating and its long-term bank facilities to [ICRA]AA with a stable outlook from [ICRA]AA- with a positive outlook, while reaffirming its top short-term rating of [ICRA]A1+ and maintaining the commercial paper rating at the same level. ICRA also upgraded long-term ratings to [ICRA]AA (Stable) and reaffirmed [ICRA]A1+ short-term ratings for Nuvama Wealth Finance Limited, Nuvama Wealth and Investment Limited, and Nuvama Clearing Services Limited, signaling strengthened credit quality across the group and potentially enhancing its access to funding and market confidence among lenders and investors.

Nuvama to Deliver Strategic Overview at 2026 India Conference

Nuvama Wealth Management Limited has informed the exchanges that its representatives will deliver a keynote industry and strategic overview presentation at the 21st Nuvama India Conference 2026 in Mumbai. The company emphasized that no unpublished price-sensitive information will be shared or discussed during the conference, underscoring its adherence to regulatory and disclosure norms for market participants.

Nuvama Posts Audio Recording of Q3 FY26 Earnings Call Online

Nuvama Wealth Management Limited has announced that the audio recording of its earnings conference call held on January 27, 2026, covering the company’s performance for the quarter and nine months ended December 31, 2025, has been made available on its website. The company has also noted that the related investor presentation was previously shared with stock exchanges, underscoring its ongoing compliance with Indian listing regulations and commitment to transparent communication with investors and market participants.

Nuvama Subsidiary Gets GST Demand Order; Company Sees No Operational Impact

Nuvama Wealth Management Limited has disclosed that its wholly owned material subsidiary, Nuvama Wealth and Investment Limited, has received an order from the Assistant Commissioner of State Tax, Delhi under Section 73 of the Delhi GST Act, 2017 for the period April 2021 to March 2022. The order raises a demand comprising tax of Rs 97.19 lakh, interest of Rs 65.38 lakh and penalty of Rs 9.72 lakh, mainly citing excess input tax credit claimed, mismatches between GST returns and other input tax credit-related issues. The subsidiary plans to appeal the order before the Appellate Authority, and the parent company has emphasised that the order will have no impact on its financials, operations or other activities, suggesting limited immediate implications for shareholders and business continuity.