Nuvama Wealth Management Limited

Financial Services — Asset Management · NSE

₹1,697.00−₹20.20 (−1.18%)

DalalBaazaar Score

79 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Nuvama Wealth Management Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nuvama Wealth Management Limited engages in wealth management, asset management and services, and capital markets businesses in India and internationally. It operates through wealth management, asset management, and capital markets segments.

IndustryAsset Management

SectorFinancial Services

Employees3,435

Annual revenue₹2,284 Cr

How does it make money?

Turns over ₹2,284 Cr a year. Of every ₹100 of sales, about ₹46 reaches shareholders as profit, with ₹86 left at the operating level before interest, tax and depreciation. Each of its 3,435 employees supports ₹66.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹66.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 16.5% and earnings to grow about 18.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.5%

Est. earnings growth+18.4%

Analysts9

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +73% while net margin moved +98% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+73%

Margin effect+98%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 29.3x already prices in growth
• P/E is close to its own historical median of 33.6x
✗ P/B of 7.49x is a steep premium to book

Quality vs. Valuation

Company Quality

89/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

50/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

29.3x

3Y Median

33.6x

39 monthly readings · mean 36.5x · range 21.6x–72.9x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 33.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 72% above the peer median of 17.0x.

vs. its own history

Fair

33.6x median over 39 months · -13%

vs. sector peers

Expensive

17.0x median of 4 peers · +72%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.6x

PEG

0.58

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 46.8% to 85.9% over 3 years.
Return on equity is rising
ROE has improved from 13.5% to 25.3%.
Return on capital is rising
ROCE has improved from 15.0% to 26.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 46.8% to 85.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 72% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 20.0% CAGR
Latest reported year was 22.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 84%✓ 85.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 23%✓ 25.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 33.6x✓ 29.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹31,312 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

29.3x

Fair

Fairly valued against the generic band

P/B Ratio

7.49x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹57.99

Profitable

Profitable on a per-share basis

ROE

25.3%

Strong

Strong capital efficiency

ROCE

26.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.82x

High

High leverage

Revenue Growth (YoY)

22.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.65%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹3,042 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

20.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

37.2%

Good

Healthy core-business profitability

Net Margin

28.1%

Good

Strong bottom-line conversion

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1731.1 / 1738.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,323 Cr	₹1,738 Cr	₹2,140 Cr	₹2,284 Cr	+20.0%
EBITDA	₹619 Cr	₹1,232 Cr	₹1,871 Cr	₹1,960 Cr	+46.8%
EBITDA Margin	46.8%	70.8%	87.4%	85.9%	—
PAT (Net Profit)	₹305 Cr	₹625 Cr	₹986 Cr	₹1,041 Cr	+50.5%
EPS	₹17.4	₹34.83	₹53.71	₹56.06	+47.7%
ROE	13.5%	21.6%	28.3%	25.3%	—
ROCE	15.0%	21.0%	30.2%	26.0%	—
Total Debt	₹5,398 Cr	₹6,746 Cr	₹7,839 Cr	₹11,544 Cr	+28.8%
Free Cash Flow	-₹1,944 Cr	-₹1,739 Cr	-₹406 Cr	-₹3,042 Cr	—

🟢 Revenue has grown at 20.0% a year over 3 years.

🟢 EBITDA has grown at 46.8% a year over 3 years.

🟢 EBITDA Margin has risen from 46.8% to 85.9% over 3 years (+39.0 pts).

🟢 PAT (Net Profit) has grown at 50.5% a year over 3 years.

🟢 EPS has grown at 47.7% a year over 3 years.

🟢 ROE has risen from 13.5% to 25.3% over 3 years (+11.7 pts).

🟢 ROCE has risen from 15.0% to 26.0% over 3 years (+11.1 pts).

🔴 Total Debt has grown at 28.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34,491 Cr

Total Liabilities

₹30,368 Cr

Cash & Equivalents

₹581 Cr

Operating Cash Flow

-₹3,014 Cr

Capex

-₹29 Cr

Shareholding (proxy)

Institutional Holding

18.2%

Insider Holding

57.1%

Corporate Actions

Dividend Rate

₹28

Ex-Dividend Date

15 May 2026

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹2,038.33

+20.1% vs CMP

Target Range

₹1,800 – ₹2,250

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

2 mixed4 general

NUVAMA WEALTH MANAGE LTD Share Price

Upstox, 16 Oct

Nuvama Wealth Management Share Price Fall and Valuation

Univest, 14 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ET Alpha Wealth Summit 2.0 | Why alternatives are becoming essential for wealth creation beyond stocks and

The Economic Times, 17 Oct

Nuvama Wealth Management shares rise 2% as EQT, CVC Capital in talks to acquire PAG’s stake worth over...

Moneycontrol.com, 21 JulM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Paras Healthcare IPO opens Oct 21, sets price band at 660-693 per share

The Economic Times, 18 Oct

Nuvama Wealth Management promoters declare no encumbrance in FY26

scanx.trade, 13 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑