Nuvama Wealth shares surge 78% from April low; what's driving the stock?

Nuvama Wealth Management share price today

 

Shares of Nuvama Wealth Management (NWML) hit a new high of ₹8,121, gaining 3 per cent on the BSE in Friday's intraday trade. In the past one week, the market price of the stock broking and allied services company has outperformed the market by surging 18 per cent. In comparison, the BSE Sensex was up 2.7 per cent during the period.

 

The stock price of NWML has bounced back 78 per cent from its 52-week low of ₹4,567.80, which it touched on April 7, 2025.

 

NWML's FY25 performance

 

Nuvama Wealth's client assets grew by about 24 per cent in the financial year 2024-25, while revenue for the year rose by about 41 per cent and profits by about 65 per cent. Nuvama Wealth closed FY25 with about ₹986 crore of profit after tax. The wealth management company's profit margins went up and the ROE substantially improved from about 23.6 per cent to 31.5 per cent.

 

India wealth management industry outlook

 

India's financial sector has performed well in fiscal 2025. Despite the slowdown and market correction in the second half, the sector ended the year on a solid ground. Looking ahead, the growth is expected to continue, though at a more measured pace as markets and investors adjust to evolving uncertainties.

 

The Reserve Bank of India (RBI), essentially, started injecting liquidity through Open Market Operations (OMO) and let the rupee depreciate. It also announced a string of repo rate cuts. Reduction of risk weight was done towards non-banking finance companies (NBFC) and micro finance companies. Inflation target became more benign.

 

CRISIL Ratings view on NWML

 

According to CRISIL, the Nuvama group is a prominent player in the wealth management serving Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI) and Affluent client segments. It offers wealth management solutions, covering investment advisory, estate planning, investment management, lending and broking services for individuals, institutions, CXOs, professional investors, and family offices.

 

The group holds a competitive position in the majority of businesses and is expected to further strengthen its market position through growth and diversification, over the medium term. Most of the businesses are fee-based, with borrowings largely onward for working capital requirements and short-tenor lending to the wealth business clients for margin/ESOP financing and loan against shares (LAS).

 

Apart from the growth in total income, cost optimization has been another key driver for improvement in profitability. Another driver for sustenance in earnings metrics has been the increased emphasis on, and thus share of, annual recurring revenue (ARR) in the wealth management business, growing scale and share from asset management business and improvement in market share for businesses such as clearing and custody.

 

About Nuvama Group

 

As one of India's leading integrated wealth management firms in India. Nuvama oversees ₹4.3 trillion of client assets and caters to a diverse set of clients, which includes over 1.2 million affluent HNIs and more than 4,250 of India's most prosperous families as of Q4FY25.

 

Nuvama offers wealth management solutions, covering investment advisory, estate planning, investment management, lending and broking services for individuals, institutions, CXOs, professional investors, and family offices. It also offers a wide bouquet of alternative asset management products and is a leading player in capital markets.