Buy Nuvama Wealth; target of Rs 8750: Motilal Oswal

Motilal Oswal's research report on Nuvama Wealth

Nuvama Wealth’s (NUVAMA) 1QFY26 operating revenue grew 15% YoY to INR7.7b (in-line), fueled by 18%/46% growth in the wealth management/asset services businesses.Total operating expenses increased 13% YoY to INR4.2b (7% below est. mainly due to a 17% decline in other expenses), driven by a 13% YoY growth in employee expenses and 11% YoY growth in other opex. CIR declined YoY to 54.7% from 56% in 1QFY25 and 56.4% in 4QFY25 (our est. of 56.2%).

Outlook

We expect a 14%/15% revenue/PAT CAGR for FY25-27E. Reiterate BUY rating on the stock with a TP of INR8,750 (based on SOTP valuations).