Check Before You Invest : Nuvama Wealth Management Ltd

Snapshot

Q.1 Which industry/sub-sector does Nuvama Wealth Management Ltd belong to?

Nuvama Wealth Management Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is Nuvama Wealth Management Ltd a good quality company?

Nuvama Wealth Management Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Nuvama Wealth Management Ltd undervalued or overvalued?

Nuvama Wealth Management Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Nuvama Wealth Management Ltd a good buy now?

Nuvama Wealth Management Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd revenue growth is 107.2% for FY-2025, which is above its 5-year CAGR of 32.79%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Return on capital employed is 30.9% for FY-2025, which is above its 5-year historical median of 12.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Return on Asset is 10%, which is above its 5-year historical median of 4.1%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Return on equity is 34.1% for FY-2025, which is above its 5-year historical median of 16.2%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Cash conversion cycle is -2569 days, below its 5-year historical median of -167 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.23	0.19
ROE	34.1	16.2
ROCE	30.9	12.8
Cash Conversion Cycle	-2569 days	-167 days

Q.6 Gross Profit margin of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Gross profit margin which is the profit after deduction of direct costs, is 49.8% for FY-2025, which is above its 5-year median of 27.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 57.66% for FY-2025, which is above its 5-year median of 39.41% indicating increasing margins.

Q.8 Net Profit Margin of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Net Profit Margin is 44.13% for FY-2025, is above with its 5-year median of 16.65%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	49.8	27.7
Operating Profit Margin	57.66	39.41
Net Profit Margin	44.13	16.65

Q.9 Debt to Equity ratio of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Debt-to-Equity ratio is 0.41, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Nuvama Wealth Management Ltd?

Nuvama Wealth Management Ltd Debt to cash flow from operations is 13.23, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nuvama Wealth Management Ltd?

Promoters hold 54.13% of the Nuvama Wealth Management Ltd, with 62.80% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nuvama Wealth Management Ltd vs industry peers?

Nuvama Wealth Management Ltd revenue CAGR is 32.79%, compared to the industry median CAGR of 18.37%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	107.2	18.4
Gross Profit Growth	272.4	24.6
Operating Profit Growth	212.4	28.8
Net Profit Growth	510.2	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.23	0.26
ROE	34.1	8.05
ROCE	30.9	10.2
Cash Conversion Cycle (days)	-2568.54	-107

Valuation & price assessment

Q.1 Stock return of Nuvama Wealth Management Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 9.58% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	9.6%

Q.3 Valuation ratios of Nuvama Wealth Management Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	41.98	53.21	20.01
Price to Book	10.77	12.42	1.64
Price to Sales	19.62	21.80	5.20
EV to EBITDA	31.78	38.07	6.89

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