NUVAMA - Investment Analysis

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

Investment Rating: 4.5

📊 Fundamental Analysis: Nuvama Wealth Management Ltd. (NUVAMA)

Nuvama is a fast-growing financial services firm with strong profitability, improving institutional interest, and attractive valuations. Despite high leverage, its PEG ratio and earnings momentum make it a compelling long-term candidate in the wealth and brokerage space.

Metric Value Implication

P/E Ratio 26.4 Reasonable vs. industry PE of 15.4 — premium justified by growth and ROE

PEG Ratio 0.50 Very attractive — growth is significantly underpriced

ROE / ROCE 30.9% / 20.4% Excellent — strong capital efficiency

Dividend Yield 2.00% Decent — adds income stability

Debt-to-Equity 2.25 High — leverage risk, but manageable if earnings remain strong

EPS ₹274 Robust — supports valuation and dividend payouts

Profit Growth (QoQ) +1.2% Stable — consistent performance

📈 Technical & Trend Analysis

Current Price: ₹7,210

DMA 50 / DMA 200: ₹7,294 / ₹6,489 — short-term consolidation, long-term bullish

RSI: 42.9 — neutral to slightly oversold

MACD: +6.95 — mild positive momentum

Volume: Below average — cautious accumulation

✅ Long-Term Investment Potential

Yes — strong candidate. Nuvama offers a rare mix of growth, profitability, and value. Its PEG ratio and ROE are standout metrics, making it suitable for long-term investors seeking exposure to financial services.

🎯 Ideal Entry Price Zone

Buy Zone: ₹6,800–₹7,200

Near 200-DMA and current support levels

Accumulate gradually if PEG stays <0.7 and ROE remains >28%

Avoid chasing above ₹7,800 unless earnings growth accelerates

🧭 Exit Strategy & Holding Period

If you're already holding

Holding Period: 3–5 years — to benefit from financialization and AUM growth

Exit Strategy

Partial Exit near ₹8,400–₹8,600 if P/E exceeds 32 and PEG crosses 1

Hold if ROCE remains >18% and debt is managed effectively

Reassess if leverage increases further or PAT growth stagnates

Would you like a comparison with other financial services stocks like Motilal Oswal, IIFL, or Anand Rathi to build a diversified wealth management portfolio?

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