1. Business Segments:
- Wealth Management: Contributes 70% of total sales.
- Asset Management: Manages an AUM of Rs 6175 CR.
- Capital Markets: Includes institutional equities, investment banking, and custody clearing businesses; contributes 38% of total sales.
2. Client Base:
- Wealth Management: 3300+ UHNI families, contributing to Rs 2.17 lac CR in client assets.
- Asset Management: 11 lacs+ affluent individuals.
- Capital Markets: Works with 1000+ Corporates and Institutions.
- Resource Deployment:
- 1000+ Relationship Managers (RMs) for UHNI families.
- Plans to double RMs in the next 5 years.
3. Financials (Q2FY24):
- Revenues: Up 14% QOQ, 30% YOY.
- PAT: Up 18% QOQ, 67% YOY.
- Operating Leverage: Exhibited by the company.
- ROE: Improved to 20% from 15% YOY.
4. Q2FY24 Con Call Highlights:
- De-Merger: Nuvama separated from Edelweiss in 2021, planned over 2 years.
- Client Focus: Emphasizes unbiased wealth management advice.
- Target Market: Avoids bottom-of-the-pyramid customers.
- RM Supply: Faces a shortage of RMs for UHNI category.
- Cross-Selling: Strategy between wealth management and capital markets clients.
- Client Assets: Increased by 26% YOY.
5. Recent IPO:
- Nuvama recently went public and has been performing well in the capital market space.
- Stock Performance: Benefiting from the favorable conditions in the bull market.
- Growth Trajectory:
- Wealth Management: Grew 16% YOY.
- Capital Markets: Grew impressively by 86% YOY.
- Future Plans: Intends to double the number of RMs in the next 5 years.
Conclusion:
Nuvama, post-de-merger, is thriving in the wealth management, asset management, and capital markets sectors. With a robust client base, a focus on quality advice, and successful cross-selling strategies, the company has achieved substantial growth. The recent IPO and impressive financial performance, especially in a bullish market, underscore Nuvama’s strength and potential in the financial services landscape.
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