Nuvama Wealth Management Limited Fundamental Analysis (NSE: NUVAMA.NS)
Nuvama Wealth Management Limited Fundamental Analysis (NSE: NUVAMA.NS)
Nuvama Wealth Management Limited (NSE: NUVAMA.NS) shows strong financial fundamentals with a PE ratio of 29.21, profit margin of 19.68%, and ROE of 27.37%. The company generates $55.1B in annual revenue with strong year-over-year growth of 23.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -12.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NUVAMA.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakNUVAMA.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakNUVAMA.NS trades at a premium to fair value.
Growth Score
ExcellentNUVAMA.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateNUVAMA.NS shows balanced financial health with some risks.
Profitability Score
ModerateNUVAMA.NS maintains healthy but balanced margins.
Key Financial Metrics
Is NUVAMA.NS Expensive or Cheap?
P/E Ratio
NUVAMA.NS trades at 29.21 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NUVAMA.NS's PEG of 7.74 indicates potential overvaluation.
Price to Book
The market values Nuvama Wealth Management Limited at 7.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.74 times EBITDA. This signals the market has high growth expectations.
How Well Does NUVAMA.NS Make Money?
Net Profit Margin
For every $100 in sales, Nuvama Wealth Management Limited keeps $19.68 as profit after all expenses.
Operating Margin
Core operations generate 20.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.37 in profit for every $100 of shareholder equity.
ROA
Nuvama Wealth Management Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nuvama Wealth Management Limited generates limited operating cash flow of $-10.56B, signaling weaker underlying cash strength.
Free Cash Flow
Nuvama Wealth Management Limited generates weak or negative free cash flow of $-10.60B, restricting financial flexibility.
FCF Per Share
Each share generates $-58.07 in free cash annually.
FCF Yield
NUVAMA.NS converts -3.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How NUVAMA.NS Stacks Against Its Sector Peers
| Metric | NUVAMA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.21 | 21.10 | Worse (Expensive) |
| ROE | 27.37% | 652.00% | Weak |
| Net Margin | 19.68% | -1585.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 910.69 | Weak Liquidity |
| ROA | 0.00% | -574.00% (disorted) | Weak |
NUVAMA.NS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nuvama Wealth Management Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.45%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
260.73%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
73.64%
Industry Style: Value, Dividend, Cyclical
High Growth