Jefferies has reiterated its Buy rating on Nuvama Wealth Management, assigning a target price of ₹8,000, following the company’s robust performance in the fourth quarter of FY25.
In Q4, Nuvama’s revenue surged 30% year-on-year, while profit rose 39% YoY, both exceeding Street expectations. The capital markets segment was the standout performer, with profit before tax (PBT) up 63% YoY, accounting for 64% of total PBT.
The wealth management division also registered 21% revenue growth, although PBT growth was restricted to 13% due to a sharp rise in costs—partially attributed to fourth-quarter-specific incentive payouts and other expenses. Jefferies noted healthy net flows, amounting to 5% of operational ARR and MPIS AUM, as a key positive for the business.
However, investment and institutional equities (IE/IB) revenues grew at a slower pace of 16% YoY, constrained by a weaker deal pipeline during the quarter.
Jefferies continues to see strong potential in Nuvama, driven by its diversified model and resilient performance across segments.
Disclaimer: The views expressed are those of Jefferies and do not constitute investment advice or a recommendation by Business Upturn.
