At a Glance
Nuvama Wealth has grown profits 58% YoY, boasts a 50%+ OPM, and serves 1.2 million rich Indians. But with 62.8% promoter pledging, it’s giving seriousNBFC anxiety. Is this the next Angel One, or a debt-fueled mirage?
🏦 What Does Nuvama Even Do?
- Born in 1993 as part of Edelweiss, rebranded in 2023 asNuvama Wealth Management Ltd.
- Basically your stock marketsutradharfor the rich: broking, research, PMS, AIFs, mutual funds, trading, custody – you name it.
- Key audience: India’saffluent, HNI and UHNIsegments.
- 1.2 million+ clients and 3,600+ ultra-rich families are under their management umbrella.
- It’s not a retail discount broker like Zerodha or Upstox – this one wears a Rolex.
🧠Core businesses:
- Equity and derivatives broking
- Wealth advisory & discretionary portfolio management
- Asset management via AIFs and PMS
- Custody and clearing services
- IPO and debt distribution
- Investment banking (via merchant banker registration)
đź’° Financials That Even Rakesh Jhunjhunwala Would Raise an Eyebrow At
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | â‚ą2,223 Cr | â‚ą3,156 Cr | â‚ą4,158 Cr |
| Net Profit | â‚ą305 Cr | â‚ą625 Cr | â‚ą985 Cr |
| Operating Margin | 40% | 50% | 53% |
| ROE | 18% | 26% | 31% |
| Dividend | Nil | Nil | 78% payout in FY25 🧻 |
🧾Takeaways:
- Profittripledin two years.
- Operating leverage kicking in hard: revenue up 87%, profit up 223% in two years.
- 50%+ OPM isunheard ofin stockbroking – looks more like a software company than a financial one.
🕵️ But wait…
- Cash flows? đź‘Ž
- Operating cash flow for FY25 is-â‚ą371 Cr
- FY24 was worse:-â‚ą1,658 Cr
- This is a pattern: every year negative cash from ops. Yikes.
🏦 Promoter Holding = Okay. But Pledging = 👀
| Metric | Mar 2025 |
|---|---|
| Promoter Holding | 54.79% |
| Pledged Holding | 62.8% of promoter stake |
| FII Holding | 16.58% |
| DII Holding | 5.8% |
| Public | 22.83% |
If overhalfof the promoter’s skin in the game is pawned off, does it even count as skin anymore?
🎯 Interpretation:
- High FII
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