Buy Nuvama Wealth Management, target price Rs 7,500: JM Financial

JM Financial has a Buy call on Nuvama Wealth Management with a target price of Rs 7,500. The current market price of Nuvama Wealth Management is Rs 6,940.5. Nuvama Wealth Management, incorporated in 1993, is a Small Cap company with a market cap of Rs 25036.35 crore, operating in NBFC sector.

Nuvama Wealth's key products/revenue segments include Fees & Commission Income, Interest, Other Services for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 1124.79 crore, up 8.68% from last quarter Total Income of Rs 1034.99 crore and up 21.07 % from last year same quarter Total Income of Rs 929.01 crore. The company has reported net profit after tax of Rs 251.53 crore in the latest quarter.

The company's top management includes Mr.Birendra Kumar, Mr.Kamlesh Shivji Vikamsey, Ms.Anisha Motwani, Mr.Navtej S Nandra, Mr.Anthony Miller, Mr.Nikhil Srivastava, Mr.Aswin Vikram, Mr.Shiv Sehgal, Mr.Ashish Kehair, Mr.Sameer Kaji. Company has S R Batliboi & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 4 crore shares outstanding.

Investment Rationale
Nuvama Wealth Management has demonstrated its ability protect robust profitability despite significant turmoil in external environment (RoA/RoE of 3.7%/30.4% in 4Q25). Share of recurring revenue (wealth+private+AMC+asset services) stands at 79% for 4Q25 vs 76% in 3Q25). As the market activity normalizes, JM Financial believes Nuvama is poised to benefit from resurgence in net new money. Robust performance of asset services business and expected breakeven in AMC business during FY26 should aid profitability. The brokerage remains constructive on the company.

Promoter/FII Holdings
Promoters held 54.78 per cent stake in the company as of 31-Mar-2025, while FIIs owned 16.58 per cent, DIIs 5.8 per cent.