A leading Indian wealth and investment manager known for its comprehensive financial services has reported robust quarterly results. This article will explore its significant 41% annual profit surge and declaration of a substantial dividend, alongside positive revenue growth. It will also cover a prominent global bank’s “Buy” rating and 30% upside target, citing strong operations and market positioning.
Nuvama Wealth Management Limited’s stock, with a market capitalisation of Rs. 25,924.70 crores, rose to Rs. 7,298.50, hitting a high of up to 1.4 percent from its previous closing price of Rs. 7,194.50. Furthermore, the stock over the past year has given a return of 44 percent.
Target By Citi
Citi has maintained a “Buy” rating on Nuvama Wealth Management Ltd., setting a target price of Rs. 9,400 per share. This implies a potential upside of around 30% from the current market levels. The rating is underpinned by Citi’s confidence in Nuvama’s strong operational performance and its strategic focus on India’s expanding wealth management landscape.
According to Citi’s analysts, Citi analysts have a positive outlook on Nuvama Wealth Management, highlighting strong momentum in client additions and continued product expansion, both of which are supporting the company’s performance. There is also a noticeable improvement in activity levels, including in the cash segment.
Nuvama’s diversified and open-architecture business model, along with its growing range of alternative investment funds (AIFs), positions the company well for sustained growth and market leadership. Its productivity is being driven by higher fund flows, new client acquisitions, and the launch of new products. Although the stock currently trades at 20 times its estimated FY27 earnings, the market appears to be overlooking the pace of Nuvama’s growth. Reflecting this confidence, Citi has increased its profit forecast for the company by 4 to 5 percent over the next couple of years, pointing to strong underlying performance.
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Financial Highlight
In Q4FY25, the company reported revenue of Rs. 1,120 crore, up 20.5% YoY from Rs. 929 crore and 8.3% QoQ from Rs. 1,034 crore. Profit stood at Rs. 255 crore, marking a 40.9% YoY growth over Rs. 181 crore and a marginal 1.2% increase QoQ from Rs. 252 crore. Over the past three years, the company delivered strong performance with a profit CAGR of 52%, sales CAGR of 33%, and ROE CAGR of 24%.
Nuvama’s Wealth Management segment delivered robust growth, with Q4 revenues at Rs. 398 Cr, up 21% YoY. Client assets rose 18% YoY to Rs. 2,93,298 Cr. Nuvama Wealth and Private saw strong flows and profitability, supported by increased RM capacity and offshore expansion, highlighting sustained traction in annuity products and managed solutions.
Dividend Policy
The Board of Directors declared an interim dividend of Rs. 69 per equity share of face value Rs. 10 for the financial year 2025-26. The record date for determining the eligibility of shareholders to receive the dividend has been fixed as Tuesday, June 3, 2025. The interim dividend will be paid or dispatched on or before June 26, 2025.
Written By Fazal Ul Vahab C H
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