Motilal Oswal Initiates Coverage on Nuvama Wealth with a Price Target of Rs 1860

Nuvama Wealth Poised for Growth with Diversified Business Model

Nuvama Wealth (NUVAMA) has established itself as a diversified play on multiple emerging themes in the capital market ecosystem. The company's robust presence in UHNI Wealth Management, midsegment Wealth Management, Custody & Clearing, and Investment, Equity & Investment Banking (IE&IB) businesses positions it for significant growth. Notably, Nuvama Wealth's Asset Management Company (AMC) business is still in its nascent stage, but has laid a strong foundation for future expansion.

Under the wealth segment, which accounts for approximately 31% of the company's FY26 revenue, Nuvama Wealth has seen robust flows, with 16% of the FY25 opening Assets Under Management (AUM) contributing to the growth. Furthermore, the company has witnessed a rising tilt toward Managed Portfolio Investment Schemes (MPIS), with 60% of new money being invested in these schemes. Additionally, the implementation of a sharper Risk Management (RM) model, early adoption of GenAI-led advisory tools, and improving retention with steady costs will drive revenue momentum. As the company scales, operational efficiency is expected to lead to margin expansion of approximately 200 basis points over FY26-28.