Nuvama Wealth (NUVAMA)

FairStock Score: 22/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, run by able managers, at a price that leaves a margin of safety. Nuvama Wealth is a stockbroking and allied financial firm, now ₹30,495 Cr market cap at ₹1,670.10. It earns high returns on capital: ROE 29.43% and ROCE 20.40%. That is attractive. Five-year revenue CAGR of 39.78% suggests it has grown fast, and profit growth of 15.00% with latest quarter sales of ₹1,104 Cr and net profit of ₹254 Cr shows profitability. Promoter holding of 54.20% aligns interests, and dividend yield is 1.64%. Piotroski F-Score 7/9 says accounting fundamentals are not bad. But Graham's arithmetic screams caution. Book value is ₹226.45, so P/B is 7.38; Graham Number is ₹350.70, meaning price is far above asset-earnings value, with margin of safety -254.98%. P/E is 28.65 and PEG is 8.35: growth is not cheap. Latest sales growth of 1.23% is a red flag, showing recent momentum has stalled despite the long-term CAGR. Debt/equity of 2.82 and Altman Z-Score of 1.03 indicate a leveraged financial with distress risk. Free cash flow is negative ₹434 Cr, and EV/EBITDA is -488.38, a figure I cannot reconcile easily. FairStock score is 22/100, marked RISKY. At ₹1,670, I see a high-quality return profile but no bargain. This is not a Graham defensive stock. If margins and profits keep compounding, it might justify a premium; but with negative FCF, high leverage, and low current sales growth, I would demand a much lower price or wait for evidence.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer