Nuvama Wealth Management Limited (NUVAMA) AI Stock Analysis

• Market Cap: ₹271.63B
• Dividend Yield: 1.91%
• Average Volume (3M): 7.28K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.87
• Revenue Growth: 16.97%
• EPS Growth: 20.99%
• Country: IN
• Employees: 3,104
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 13.20
• Shares Outstanding: 181,806,170
• 10 Day Avg. Volume: 7,550
• 30 Day Avg. Volume: 7,282
• PEG Ratio: 0.08
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.98
• P/FCF Ratio: -10.49
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹8,179.00 ▲(447.44% Upside)

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

Revenue Growth

Nuvama's robust revenue growth indicates a successful expansion of its client base and effective service offerings, enhancing its market position.

Gross Profit Margins

High gross profit margins reflect efficient cost control and pricing power, contributing to sustainable profitability over the long term.

EPS Growth

Significant EPS growth suggests improved profitability and operational efficiency, enhancing shareholder value and financial stability.

Negative Factors

Cash Flow Management

Negative free cash flow indicates challenges in converting revenue into cash, potentially impacting liquidity and investment capacity.

Reliance on Liabilities

Dependence on liabilities for financing could increase financial risk, especially if interest rates rise or credit conditions tighten.

Operational Expenses

High operational expenses can erode net margins, limiting the company's ability to invest in growth and improve profitability.

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 Wealth Management Limited generates revenue through multiple key streams. Primarily, the company earns fees from asset management services, which include advisory fees and management fees based on the assets under management (AUM). Additionally, Nuvama may generate income through commissions from the sale of financial products such as mutual funds and insurance. The company also derives revenue from performance fees linked to the success of its investment strategies. Strategic partnerships with financial institutions and product providers enhance its offerings and can lead to additional revenue opportunities through co-branded products and services. Overall, Nuvama's diversified revenue model allows it to capitalize on various aspects of the wealth management industry.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.73B	21.40B	17.38B	13.23B	15.65B	10.83B
Gross Profit	6.80B	7.53B	6.38B	4.13B	15.65B	10.83B
EBITDA	23.08B	21.95B	15.34B	8.74B	6.35B	8.54B
Net Income	10.29B	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	220.96B	139.24B	66.33B	10.00B	3.35B
Total Debt	0.00	78.39B	67.46B	53.98B	16.59B	5.77B
Total Liabilities	-34.93B	248.95B	174.88B	104.57B	86.85B	57.76B
Stockholders Equity	34.93B	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: Positive
• Last Price: 1494.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1494.05 is above the 20-day moving average (MA) of 1449.01, above the 50-day MA of 1446.08, and above the 200-day MA of 1350.74, indicating a bullish trend. The MACD of 10.64 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 73.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹271.63B	26.11	―	1.91%	16.97%	20.99%
MOTILALOFS	73 Outperform	₹518.11B	25.54	―	0.57%	-14.24%	-40.53%
SMCGLOBAL	70 Outperform	₹18.52B	18.94	―	0.70%	-5.03%	-54.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BIRLAMONEY	63 Neutral	₹8.25B	14.56	―	―	-6.37%	-24.10%
EDELWEISS	55 Neutral	₹102.41B	23.72	―	1.37%	-19.77%	-11.03%
IFCI	45 Neutral	₹143.98B	38.04	―	―	-12.62%	175.71%

Nuvama Wealth Management Limited Corporate Events

Nuvama Wealth Management Announces Share Split and Strategic Investments

Nuvama Wealth Management Limited announced several key decisions following its Board of Directors meeting on November 4, 2025. The company approved the subdivision of its equity shares, changing the face value from Rs. 10 to Rs. 2 per share, which is expected to enhance liquidity and make shares more accessible to investors. Additionally, the Board declared an interim dividend of Rs. 70 per share and approved a significant investment of Rs. 200 crores in its subsidiary, Nuvama Wealth Finance Limited, through a rights issue. These strategic moves are likely to strengthen Nuvama’s market position and provide value to its stakeholders.

Nuvama Wealth Management Announces Dividend, Share Split, and Major Investment

Nuvama Wealth Management Limited announced key decisions from its recent board meeting, including the approval of interim dividends and a sub-division of its equity shares. The interim dividend is set at Rs. 70 per share, with a record date of November 11, 2025, and the company plans to split its shares to enhance liquidity. Additionally, Nuvama will invest Rs. 200 crores in its subsidiary, Nuvama Wealth Finance Limited, through a rights issue, reflecting its strategic focus on strengthening its financial position and expanding its market presence.

Nuvama Wealth Management Announces Key Financial Decisions and Investment Plans

Nuvama Wealth Management Limited announced several key decisions following a board meeting, including the approval of consolidated and standalone unaudited financial results for the quarter and half-year ending September 30, 2025. The company declared an interim dividend of Rs. 70 per equity share and approved a sub-division of its equity shares, subject to member approval. Additionally, the board approved a Rs. 200 crore investment in its wholly owned subsidiary, Nuvama Wealth Finance Limited, through a rights issue. These strategic moves are expected to enhance shareholder value and strengthen the company’s financial position.

Nuvama Wealth Management Announces U.S. Investor Meetings

Nuvama Wealth Management Limited has announced a schedule for a series of meetings with analysts and institutional investors, set to take place from November 10-14, 2025, in the U.S. This non-deal roadshow, hosted by Nuvama Institutional Equities, will feature in-person group or one-on-one meetings where company representatives will discuss the Investor Presentation for the quarter and half-year ended September 30, 2025. The presentation will be accessible on the company’s website and stock exchanges, with assurances that no unpublished price-sensitive information will be shared.

Nuvama Wealth Management Expands Equity Share Capital Through ESOP Allotment

Nuvama Wealth Management Limited has announced the allotment of 12,066 equity shares following the exercise of employee stock options, increasing the company’s equity share capital from 3,60,43,613 to 3,60,55,679 shares. This move reflects the company’s commitment to employee incentives and could potentially enhance employee engagement and retention, thereby impacting its operational dynamics positively.

Nuvama Wealth Management Expands Equity Share Capital Through ESOP Allotment

Nuvama Wealth Management Limited has announced the allotment of 12,066 equity shares to employees who exercised their stock options under the company’s Employee Stock Option Scheme. This move increases the company’s equity share capital from 3,60,43,613 to 3,60,55,679 shares, reflecting its commitment to employee incentives and potentially enhancing its market position by aligning employee interests with shareholder value.