This Mukul Agrawal-owned broking stock has zoomed 46% in 7 days

Nuvama Wealth Management hit a new high of Rs 6,712, surging 6% on the BSE in Thursday's intra-day. The stock has more-than-doubled in just six months.

Shares of Nuvama Wealth Management (Nuvama) hit a new high of Rs 6,712, surging 6 per cent on the BSE in Thursday’s intra-day trade in an otherwise subdued market. In comparison, the BSE Sensex was up 0.07 per cent at 81,797 at 01:01 pm.

Nuvama has fixed August 7, 2024, as the record date for interim dividend of Rs 81.50 per equity share for the financial year 2024-25. The said interim dividend will be paid/dispatched on or before August 24, 2024, the company said.

In the past seven trading days, the market price of this stock broking and allied services company has rallied 46 per cent. In less than six months, the stock price of Nuvama has more-than-doubled or zoomed 112 per cent from a level of Rs 3,172.85 on February 6, 2024.

Investor, Mukul Mahavir Agrawal holds 500,000 shares representing 1.41 per cent stake in Nuvama at the end of June 2024 (Q1FY25) quarter, the shareholding pattern data shows.

Nuvama is one of India’s leading integrated wealth management firm in India, Nuvama oversees Rs 3.89 trillion of client assets and caters to a diverse set of clients which includes ~1.2 million affluent and HNIs and ~3,900 of India’s most prosperous families, as of Q1FY25.

Nuvama offer an array of services to clients through a comprehensive suite of wealth management, asset management & capital markets services. The company offers wealth management solutions, covering investment advisory, estate planning, investment management, lending and broking services for individuals, institutions, CXOs, professional investors, and family offices.

In Q1FY25, Nuvama reported a strong 133 per cent year-on-year (YoY) jump in operating profit after tax at Rs 221 crore, on the back of healthy performance. The revenue rose by 60 per cent YoY to Rs 668 crore.

In Asset Management the company’s AUM grew by 30 per cent YoY and fresh sales were ~Rs 600 crore in Q1. This run rate is expected to grow as the company has launched multiple new schemes in the last 3-6 months across all three strategies.

Macroeconomic fundamentals for India remain robust. These favourable conditions, pro business policies, strong markets and rising income levels are driving wealth creation in the hands of households. Changing customer investment preferences to capital markets products over traditional investment avenues augurs well for wealth management and asset management sectors.

Momentum continued in capital markets. Growth in market volumes, rise in the company’s market share, closure of multiple marquee deals in IB and new flows in asset services drove the top line. With operating leverage playing out the profitability rose further, the management said.

Indian economy is likely to continue its growth momentum. Combination of normal monsoon, continued government capex, strong private sector balance sheets and ending exports drag should continue to support growth going ahead. Expect Reserve Bank of India (RBI) rate cuts to occur in the later part of the year, Nuvama said in its FY24 annual report.

These structural tailwinds and strong fundamentals will continue the growth momentum across financial services sectors. Wealth Management, Asset Management and Capital Markets will be the key beneficiaries of this trend, the company said.

Income and wealth levels in India will continue to grow with growth in overall economy. Further, financialisation of savings and changing preferences of investors to access asset classes like, MF, PMS, AIF, ReITs and InvITs will further accelerate the growth of investments. Robust returns from capital markets over long term period will further aid the growth of overall wealth, it added.