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Nuvama Wealth Management (NUVAMA): Strong Growth, Dividend & Regulatory Woes

Nuvama Wealth Management Ltd (formerly Edelweiss Broking) has recently been in market spotlight—registered strong Q4/FY25 performance, declared an impressive dividend, but also faced a sharp share price shock due to SEBI’s action involving Jane Street.

📊 Q4 FY25 & FY25 Financial Highlights

  • Q4 FY25 revenue climbed to ₹1,124.8 cr (+21% YoY) and PAT rose 41% to ₹255 cr (EPS ₹71.1).
  • FY25 top-line was ₹4,169 cr (+32% YoY), with PAT soaring to ₹986 cr (+58%).
  • Profit before tax margins increased from 38% to 45%, and ROE improved from ~23.6% to ~31.5%.

💰 Dividend & Share Price Performance

  • The board approved an interim dividend of ₹69/share (~2.6% yield), the highest among peers.
  • The stock hit a 52-week high of ₹8,121 (BSE) recently—a 78% rally from the April low—before plunging ~10% to ~₹7,350 after SEBI’s Jane Street ban.

📈 Business Momentum & Analyst Views

  • Client assets rose ~24% to ₹4.3 tn in FY25, supported by growth across wealth, asset management, and capital markets.
  • Nuvama Wealth is trading at ~29.5× forward P/E versus industry ~30×, and PB ~8.4×; consensus is unanimously a BUY, with a target of ~₹8,405.
  • Recent JM Financial “Buy” rating with ₹7,500 target underscores confidence post-earnings.

⚠️ Risks & What to Watch

  • Regulatory Risk: SEBI’s ban on Jane Street caused a steep ~10% decline—though Nuvama wasn’t involved, association risk remains.
  • Valuation Risk: High multiples (~30× PE) require consistent delivery and margin maintenance.
  • Market Threats: Any slowdown in capital markets activity could impact fee income and client flows.
Bottom Line: Nuvama Wealth Management delivered a stellar FY25 with high profitability, rising client assets, and shareholder returns. However, recent regulatory association shocks and lofty valuation multiples introduce short-term risk. Investors should monitor regulatory follow‑up and next quarter's performance to validate long-term growth expectations.

📚 Sources

  • Q4 FY25 & FY25 results, margins, ROE, dividend – KnowledgePublisher, Moneycontrol, Business Standard
  • Share price movements: 52-week high, SEBI shock & fall – ValueResearchOnline, ETMarkets, Business Standard
  • Valuation, analyst consensus – Trendlyne, SimplyWallSt, INDmoney
  • Analyst rating: JM Financial Buy at ₹7,500 – Economic Times

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