Nuvama Wealth Management Ltd.
ISIN: INE531F01023 • Market Cap: ₹31,806 Cr
The 5-Pillar Quality Audit for Nuvama Wealth Management Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (52.3%), Return on Capital Employed (30.8%), and equity compounding (28.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 2.30 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (30.2%) and 3Y PAT CAGR (51.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 29.37 vs PEG of 1.63 and Dividend Yield of 1.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 54.0%, backed by 27.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 30.8%)
Nuvama Wealth Management Ltd. generates exceptional return on capital employed of 30.8%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 28.3%)
Shareholder equity compounds at a healthy 28.3%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 30.2%)
Revenue has expanded at 30.2% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 51.8%)
Net earnings have compounded at 51.8% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (27.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 27.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 2.30)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking NUVAMA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 78/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare NUVAMA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Nuvama Wealth Management Ltd. (NUVAMA)Current | 78/100 | ₹31,806 Cr | 29.37 | 30.8% | 2.30 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Nuvama Wealth Management Ltd.
Q:What is the 5-Pillar Fundamental Score for Nuvama Wealth Management Ltd. (NUVAMA)?
Nuvama Wealth Management Ltd. has a RupeeTools Fundamental Score of 78/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (99/100), Financial Health (45/100), Growth (99/100), Valuation (68/100), and Ownership Quality (78/100).
Q:Is NUVAMA fundamentally strong for long-term investment?
Yes, NUVAMA exhibits solid fundamental strength with a 78/100 score, driven by a return on equity of 28.3% and a debt-to-equity ratio of 2.30.
Q:Does NUVAMA pass the Coffee Can Investing filter?
Yes! NUVAMA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does NUVAMA compare against other Financial Services peers?
Within India's Financial Services sector, NUVAMA trades at a P/E of 29.37 and generates an ROCE of 30.8%. Compare its 5-Pillar score of 78/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.