Nuvama Wealth Management Ltd.
NSE: NUVAMANuvama Wealth Management Ltd.: A 30-second snapshot
Nuvama Wealth Management (NSE: NUVAMA) trades at ₹1,458.5, up 36.62% over 12 months, above both its 50-DMA (₹1,282) and 200-DMA (₹1,330), with RSI at 57.75. Trailing PE stands at 26.0 against a forward PE of 18.6, ROE of 27.32% is the highest in its 6-stock peer group, and D/E of 282.3 reflects the leverage-intensive structure of its wealth and broking business. Two separate regulatory warning letters — from SEBI and NSE — were issued to subsidiary NWIL in late April and early May 2026.
P/E
26.0
Forward P/E
18.6
ROE
+27.3%
Debt / Equity
282.32
Profit Margin
+28.3%
Div. Yield
+1.9%
5Y ROE > 15%
2/5
5Y FCF > 0
0/5
Quality
48/100
News
7 headlines · 1 positive · 3 negative
SEBI Issues Administrative Warning Letter to Nuvama Wealth Management's Subsidiary NWIL - scanx.trade
scanx.trade
Nuvama Wealth Management Q4FY26 Earnings Call Recording Now Available Online - scanx.trade
scanx.trade
NSE Issues Warning Letters to Nuvama Subsidiary for Periodical Submission Observations - scanx.trade
scanx.trade
Nuvama Wealth Management Allots 1,38,099 Equity Shares Under ESOP and ESAR Schemes - India IPO
India IPO
Nuvama Wealth Management Allots 1,38,099 Equity Shares Under ESOP and ESAR Schemes - scanx.trade
scanx.trade
Recent context
- ·SEBI issued an administrative warning letter to Nuvama's subsidiary NWIL on or around 2026-05-07, and NSE separately issued warning letters to the same entity for periodical submission observations on or around 2026-04-29 — two regulatory notices within roughly two weeks.
- ·Q4FY26 earnings call recording was made available online (2026-05-13), and the company allotted 1,38,099 equity shares under ESOP and ESAR schemes (2026-05-11), indicating ongoing employee equity compensation activity.
- ·Mean analyst rating of 1.0 across 8 analysts (1–5 scale, lower = more constructive) — the tightest possible consensus reading from a small coverage base of 8 analysts.
Strengths
- +ROE of 27.32% is the highest among the 6 peers tracked (AXISBANK 13.15%, BAJFINANCE 17.91%, HDFCBANK 13.82%), positioning Nuvama as the top-ranked peer on return on equity in this comparison set.
- +Forward PE of 18.6 represents a 28% compression versus trailing PE of 26.0, implying the market is pricing in meaningful earnings growth; trailing PE of 26.0 sits between HDFCBANK (17.2) and BAJAJFINSV (28.4).
- +Price is 9.7% above its 200-DMA (₹1,330) and RSI of 57.75 sits in the neutral zone — the stock is not technically extended by RSI measures even after the 36.62% 12-month gain.
- +Dividend yield of 1.92% provides an income component alongside the capital appreciation; 1Y price change of 36.62% places Nuvama ahead of peers for whom 1Y price data was available in this dataset.
Weaknesses
- −Two active regulatory actions: SEBI administrative warning letter to subsidiary NWIL (May 2026) and NSE warning letters for periodical submission observations (April 2026) — the recency and multiplicity of these actions is a governance flag that warrants monitoring.
- −D/E of 282.3 with a rising debt trend and 0 FCF-positive years across available history. While wealth management firms carry structural leverage, the combination of zero free cash flow and accelerating debt increases sensitivity to any tightening of funding conditions.
- −ROE persistence is shallow: only 2 of the available historical years recorded ROE above 15%, and 5-year earnings CAGR is 4.3% — the current 27.32% ROE has limited precedent in the company's own track record.
- −Quality score of 38 ranks 4th of 6 in the peer group (consistency score 47) — below AXISBANK (53), BAJFINANCE (53), and HDFCBANK (47) — indicating Nuvama's composite fundamental quality is in the lower half of this comparison set.
Open questions
- ?Does the D/E of 282.3 reflect primarily client margin funding and custody liabilities (which are offset by matching assets), or does it include significant proprietary leverage — and how has this mix shifted as debt trends rising?
- ?What drove the ROE expansion to 27.32% when only 2 of the available historical years cleared the 15% threshold — is this attributable to a structural business mix change, a cyclically strong market environment for wealth management, or a one-time item?
- ?How material is the SEBI administrative warning and NSE letter to NWIL in terms of potential financial penalties, operational restrictions, or reputational impact on Nuvama's core client acquisition and AUM growth?
- ?The forward PE of 18.6 implies meaningful earnings growth relative to trailing earnings — what are the specific drivers behind that earnings growth assumption, and how sensitive are those assumptions to market volumes and AUM trajectory?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| NUVAMA | Nuvama Wealth Management Ltd.You're viewing | 26.0 | +27.3% | 38 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹1,458.50
SMA 50
₹1,282.42
SMA 200
₹1,329.93
RSI (14)
57.8 (neutral)
From 52w high
-10.7%
1Y return
+36.6%
3M return
+6.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highSEBI issued an administrative warning letter to subsidiary NWIL (reported 2026-05-07), and NSE separately issued warning letters to the same subsidiary for periodical submission observations (reported 2026-04-29). Two distinct regulatory actions against a subsidiary within a single month constitute an active governance flag.
- highD/E of 282.3 with a rising debt trend and 0 FCF-positive years across available history. While leverage is structurally higher in wealth management and broking (client margin funding, proprietary books), zero FCF and accelerating debt together indicate persistent cash consumption.
- mediumROE persistence is thin: only 2 of the available years showed ROE above 15%, and 5-year earnings CAGR is 4.3% — suggesting the current trailing ROE of 27.32% may reflect a recent shift rather than a long-established track record. Consistency score of 47 and quality score of 38 are in the lower tier of the peer group.
- mediumQuality score of 38 ranks 4th of 6 in the sector peer group (peers include AXISBANK 53, BAJFINANCE 53, HDFCBANK 47). Note that Nuvama is a wealth management firm grouped alongside commercial banks and diversified financials; D/E comparisons require adjusting for structural differences.
Cross-section contradictions
- Current trailing ROE of 27.32% ranks first among the 6-stock peer group, yet only 2 of the available historical years recorded ROE above 15% — the recent profitability level has limited track record of persistence.
- Price appreciated 36.62% over 12 months and forward PE of 18.6 is well below trailing PE of 26, while 5-year earnings CAGR is 4.3% and quality score sits at 38 (4th of 6 peers) — price momentum and forward earnings expectations are running well ahead of the medium-term fundamental trend.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days