๐ Nuvama Wealth Management Ltd | Broker Report | ๐๐๐ ๐๐ข๐ญ๐ญ ๐ข
๐ข ๐๐ถ๐บ ๐๐ถ๐ท๐ข๐ฎ๐ข ๐๐ฆ๐ข๐ญ๐ต๐ฉ; ๐ต๐ข๐ณ๐จ๐ฆ๐ต ๐ฐ๐ง ๐๐ด 1860: ๐๐ฐ๐ต๐ช๐ญ๐ข๐ญ ๐๐ด๐ธ๐ข๐ญ
๐ ๐๐ฆ๐ค๐ฐ๐ฎ๐ฎ๐ฆ๐ฏ๐ฅ๐ข๐ต๐ช๐ฐ๐ฏ: BUY
๐๏ธ ๐๐ณ๐ฐ๐ฌ๐ฆ๐ณ๐ข๐จ๐ฆ: Motilal Oswal
Motilal Oswal initiates coverage on ๐ก๐๐๐ฎ๐บ๐ฎ ๐ช๐ฒ๐ฎ๐น๐๐ต ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐ with a ๐๐จ๐ฌ rating and a ๐ง๐ฎ๐ฟ๐ด๐ฒ๐ ๐ฃ๐ฟ๐ถ๐ฐ๐ฒ (๐ง๐ฃ) ๐ผ๐ณ โน1,860, implying a 23% upside from the current market price of โน1,510.
๐ฅ๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น๐ฒ & ๐๐ฒ๐ ๐๐ป๐๐ถ๐ด๐ต๐๐:
- ๐๐๐๐ฟ๐ฎ๐ฐ๐๐ถ๐๐ฒ ๐ฉ๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป๐: Nuvama is trading at one of the cheapest valuations in the capital market ecosystem, with a FY28E P/E of 19x, making it an attractive investment bet.
- ๐ฆ๐๐ฟ๐ผ๐ป๐ด ๐๐ฟ๐ผ๐๐๐ต ๐ข๐๐๐น๐ผ๐ผ๐ธ: The brokerage forecasts an 18% revenue CAGR and 19% PAT CAGR for Nuvama over FY26-28.
- ๐๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฒ๐ฑ ๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ ๐ผ๐ฑ๐ฒ๐น: Nuvama operates across multiple themes in the capital market ecosystem, including:
โธ ๐ช๐ฒ๐ฎ๐น๐๐ต ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐: Driven by robust flows, increasing tilt towards MPIS, and GenAI-led advisory tools. Expects ~200bp margin expansion.
โธ ๐ก๐๐๐ฎ๐บ๐ฎ ๐ฃ๐ฟ๐ถ๐๐ฎ๐๐ฒ (๐จ๐๐ก๐): Witnessing strong flow momentum, supported by a high-touch UHNI platform and offshore expansion. Expects 20% revenue CAGR & ~150bp margin expansion.
โธ ๐๐ฎ๐ฝ๐ถ๐๐ฎ๐น ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐๐ & ๐๐๐๐ฒ๐ ๐ฆ๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ๐: Poised for a steady rebound, with Asset Services reaching new peaks. Expects ~15% revenue CAGR.
โธ ๐๐ ๐ & ๐๐น๐๐ฒ๐ฟ๐ป๐ฎ๐๐ฒ๐: A strategically important, though currently loss-making, platform with significant medium-term value creation potential.
- ๐๐ป๐ฑ๐๐๐๐ฟ๐ ๐ง๐ฎ๐ถ๐น๐๐ถ๐ป๐ฑ๐: India's rapid wealth creation, driven by entrepreneurship and market-led growth, fuels demand for advisory and wealth management services. Digital platforms & AI are transforming the sector.
- ๐๐ฒ๐ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐ฃ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐๐ถ๐ผ๐ป๐ (๐๐ฌ28๐):
โธ Revenues: โน41.9 billion
โธ PBT: โน19.0 billion
โธ PAT: โน14.3 billion
โธ EPS: โน79
Motilal Oswal reiterates its BUY rating, highlighting Nuvama's resilient earnings profile, disciplined cost-to-income ratio, and strong industry tailwinds. The report suggests that recent regulatory changes are unlikely to significantly impact earnings. ๐
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