NUVAMA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Nuvama Wealth & Investment Ltd. shows strong profitability, impressive returns, and promising growth dynamics, though debt levels and elevated price range merit a closer watch.

📊 Core Financial Health

ROE: 30.9% & ROCE: 20.4% — excellent capital productivity; shows management is delivering shareholder value.

EPS: ₹274 — strong bottom-line performance, driven by scale and operational effectiveness.

Debt-to-equity: 2.25 — high leverage, suggesting aggressive funding strategy. Needs monitoring if rates tighten.

PAT Qtr Growth: ₹252 Cr. → ₹255 Cr. — minor increase, but steady performance.

Dividend Yield: 2.00% — decent income for yield-seeking investors.

💰 Valuation Insights

Metric Value Interpretation

P/E Ratio 26.4 Slightly above industry PE of 15.4 — growth premium priced in

P/B Ratio ~7.43 Reflects market confidence, though premium on assets

PEG Ratio 0.50 Very attractive — suggests undervaluation relative to growth

Intrinsic Value Estimated ₹7,500–₹7,800 Current price offers moderate upside potential

🧭 Business Model & Strategic Moat

Diversified across wealth management, broking, asset advisory, and alternative investments.

Rebranded from Edelweiss to Nuvama — sharpening focus on high-net-worth and retail clients.

Digital platforms & advisory services position it for scalable growth.

Competitive advantages include brand legacy, multi-channel delivery, and regulatory license stack.

📉 Technical Sentiment

RSI: 42.9 — mildly oversold territory, suggests consolidation phase.

MACD: 6.95 — mild bullish crossover; momentum turning.

Trading just below DMA 50 (₹7,294) and above DMA 200 (₹6,489) — mixed signals; short-term weakness, long-term strength.

Volume below 1-week average — weak trading conviction.

🎯 Entry Zone & Long-Term Outlook

Suggested Entry Zone: ₹6,750–₹7,050 — offers value with cushion for upside.

Long-Term View

Fits well for growth investors focused on financials and private wealth services.

Keep tabs on debt management, client acquisition pace, and regulatory frameworks.

Ideal for portfolios looking to tap into India’s rising affluence and investment digitization.

Want to pit Nuvama against Motilal Oswal or IIFL Wealth to see who’s best positioned for India's rising financialization wave? I’d be glad to build a head-to-head profile. 📈💼🏦

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