Nuvama Wealth shares up 9% as Q2 profit grows 57%

Shares of recent debutant Nuvama Wealth Management Ltd hit a new high in Monday's trade after the company reported a 57 per cent year-on-year (YoY) jump in consolidated profit after tax at Rs 145 crore compared with Rs 93 crore in the corresponding quarter last year. Revenue for the quarter was up 29 per cent YoY at Rs 492 crore compared with Rs 417 382 crore in the same quarter last year.

The stock, which debuted on stock exchanges on September 26, climbed 8.98 per cent to hit a high of Rs 2,948 on BSE. To recall, investment firm PAG had in 2020 bought a stake in the wealth management business of Edelweiss Financial Services. It later announced the demerger and subsequent listing of the wealth management business.

MD & CEO Ashish Kehair said the last 6-9 months were challenging globally.

"The fallout of Silicon Valley bank, followed by rising bond yields owing to fiscal deficit concerns in the US and persistent weakness in China’s economic recovery. These have had an adverse impact on global asset markets and economic activity. There has been some rub-off on India as well with weakness in exports, however our domestic economy stands resilient with liquidity being benign."

Kehair said his company was planning to double the number of relationship managers in the next five years.

"We also plan to build a full stack offshore capability to serve the domestic clients for their offshore needs and the NRI diaspora. In addition, our asset management division will persist in building a full suite of alternatives, scale public market strategies and enhance distribution capabilities by leveraging Nuvama and expanding in domestic and international markets.”

PAG owns a controlling stake of 56 per cent in Nuvama Wealth.

Nuvama Wealth Management is the third listed wealth management company on Dalal Street, the other two being Prudent Corporate Advisory Services and Anand Rathi Wealth.

Also read: Stock recommendations by analysts for October 30, 2023: Asian Paints, Shriram Finance, Venus Pipes and Bajaj Finance

Also read: Cello World IPO to open, TVS Motor, Marico Q2 earnings in Top News on October 30: Stock markets, Bank Nifty, Crude oil, gold rate outlook, new Mac launches expected at Apple’s ‘Scary Fast’ event

Also read: Top 10 stocks to watch on October 30, 2023: Adani Green, KPIT Tech, Jupiter Wagons, Pfizer, Zen Tech, DLF and more