Bernstein initiates coverage on Nuvama Wealth stock with Outperform rating

Published 23/07/2025, 12:52
Bernstein initiates coverage on Nuvama Wealth stock with Outperform rating

Investing.com - Bernstein has initiated coverage on Nuvama Wealth Management (NUVAMA:IN) with an Outperform rating and a price target of INR9,790.00.

The research firm identified four growth engines for Nuvama Wealth: wealth management for high and ultra-high net worth clients, clearing services, and asset management.

Bernstein analyst Manas Agrawal highlighted the clearing business as particularly noteworthy but "less understood," citing its high growth potential and over 40% return on equity (ROE), with exposure to rising derivative volumes and growth of alternative fund managers in India.

The firm acknowledged near-term headwinds due to ongoing regulatory actions affecting one large client, which could impact short-term performance.

Despite these challenges, Bernstein maintains a positive outlook on Nuvama’s medium-term growth prospects, forecasting approximately 25% profit growth and 29% ROE beyond what it expects to be a softer FY26.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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