Foreign brokerage firm Jefferies has initiated coverage on Nuvama Wealth Management and 360 ONE WAM with a ‘Buy’ rating, leading to a surge in their share prices in early trade on Tuesday. Nuvama Wealth Management saw its share price jump over 6%, reaching a new 52-week high of ₹5,346.55, while 360 ONE WAM shares gained over 3%, reaching an intraday high of ₹747.20.
Jefferies believes that Indian wealth managers are well-positioned to benefit from India’s economic growth and the financialization of savings, particularly in capital markets. They expect Indian wealth managers to see a doubling of active asset under management (AUM) over the next few years.
The brokerage firm also highlighted that Indian wealth managers are gaining share in the ultra-HNI segment, where global players are retreating and smaller banks lack the capacity for personalized solutions. Jefferies forecasts a 20-22% profit CAGR for leading players in the industry over the next few years.
Jefferies initiated coverage on Nuvama Wealth Management with a target price of ₹6,000 per share, implying an upside of 19% from the previous closing price. They expect the company to see AUM and profit before tax (PBT) CAGR of 22% and 20%, respectively, over the next few years.
For 360 ONE WAM, Jefferies has a target price of ₹900 per share, suggesting a 26% upside. They believe that network expansion and growing client vintage will drive a 25% CAGR in active AUM for the wealth business.
At 10:30 am, Nuvama Wealth shares were trading 4.81% higher at ₹5,282.05, while 360 ONE shares were trading 0.10% higher at ₹722.00 on the BSE.
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