Driven by robust financial results and recent strategic developments, this wealth management stock has surged more than 42 percent in just 10 days.
Nuvama Wealth Management Ltd.’s share price hit an all-time high of Rs.6,712 on August 1, 2024, marking a remarkable 42 percent rise in 10 days from Rs.4,741.90 on July 22, 2024. Since its listing on September 26, 2023, the stock has delivered over 170 percent in returns within a year.
About the company
Nuvama Wealth and Investment Limited (formerly Edelweiss Broking Limited) is one of India’s largest wealth management platforms, serving over 2,400 wealthy families and about 6,70,000 high-net-worth individuals.
It offers Investment Management, Mutual Fund Distribution, Research Analysis, Stock Broking, Clearing and Custody, Portfolio Management, Depository Services, Debt Syndication, and Securities Trading and Advisory.
Financial Performance
This drastic rise in share price was fostered by various factors including robust quarterly results, increase in market share, increase in asset under management and capital expenditure.
In the quarter ending June 2025, Nuvama Wealth Management Ltd. reported a significant revenue increase to Rs.949 crores, up 46 percent from Rs.648 crores in Q1 FY24. Profit-after-tax (PAT) surged by nearly 80 percent during the same period.
The Return on Equity has increased 13 percent whereas the cost to income has reduced by 14 percent in favour of the company.
Major Segments responsible for the rise
The growth in revenue and net profits of Nuvama Wealth Management Ltd was driven by strong performance across its Wealth Management, Asset Management, and Capital Markets segments.
In Q1 FY25, the Wealth Management segment saw Client Assets rise 35 percent to Rs.2,74,124 crore, with MPIS assets growing 33 percent to Rs.24,960 crore, supported by 75 percent net new money. The company also added 67 Relationship Managers(RMs) in Q1 and over 350 in the past year.
The Asset Management segment experienced a 30 percent YoY incline in Assets Under Management (AUM) to Rs.7,692 crore, mainly due to public markets, and expanded its product suite across various strategies.
In the Capital Markets segment, client assets reached Rs.1,07,225 crore, a 115 percent YoY rise, driven by higher market volumes, improved market share, IB (Investment Banking) deal closures, and new asset service flows.
Further advancements
Operating expenses (Opex) for Q1 amounted to Rs.95 crore, marking a 13 percent increase compared to the previous year.
As of the end of Q1 FY25, ARR earning assets reached Rs.38,667 Cr, reflecting a 48 percent YoY growth, primarily driven by managed products. The company also declared a dividend of Rs.81.50 per share.
Nuvama Wealth has a wide presence across India, managing Rs.87,842 crore in client assets and serving approximately 1.2 million clients. About 20 percent of these clients are serviced by Relationship Managers (RMs) and External Wealth Managers (EWMs).
Management Commentary
Commenting on the performance Ashish Kehair, MD & CEO of Nuvama Group said, “Our execution of strategic priorities remains on track. We continue to grow our sales capacity, client relationships, client assets and our market share.
In Wealth Management our investments continue; we added 60+ RMs (Relationship Managers), launched an industry leading technology tool for portfolio-solutions and garnered healthy new flows for annuity products.
We also received final approval from DIFC (Dubai International Financial Centre) authorities on July 24 for our offshore private wealth proposition in Dubai”.
Written by – Siddesh S Raskar
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