Interim Dividend For FY25 of Rs. 63: Will Be Paid By November 23, Record Date November 7; BUY/HOLD?

 One of the top wealth management firms in India is Nuvama Wealth Management Limited (NSE, BSE: NUVAMA). As one of the top comprehensive wealth management companies in India, Nuvama manages Rs 4,41,276 Cr in client assets and serves a wide range of customers, including 4,050+ of the wealthiest families in India as of Q2 FY25, as well as about 12 lac wealthy and HNIs. For individuals, organisations, CXOs, professional investors, family offices, and institutions, Nuvama provides wealth management solutions that include investment advisory services, estate planning, investment management, lending, and broking services. It is a major participant in the capital markets and provides a broad range of alternative asset management products.

Nuvama Wealth Management Dividend 

We are pleased to inform you that the Board of Directors of Nuvama Wealth Management Limited, at its Meeting held on October 25, 2024, recommended and declared interim dividend for the financial year 2024-25 of Rs. 63/- (Rupees Sixty Three only) per equity share of Rs. 10/- (Rupee Ten only) each. Pursuant to the changes introduced by the Finance Act, 2020, w.e.f. April 1, 2020, the Company is required to withhold taxes at the prescribed rates on the dividend paid to its shareholders. The withholding tax rate varies depending on the residential status of the shareholder and the documents submitted by them and accepted by the Company. Accordingly, the above referred interim dividend, will be paid to the Shareholders after deducting the tax at source," said the company in a regulatory statement.

The Board of Directors "declared Interim Dividend of Rs. 63/- per equity share of the face value of Rs. 10/- each for the financial year 2024-25. Pursuant to Regulation 42 of the Listing Regulations, the Board has fixed Thursday, November 7, 2024, as the record date. The said Interim Dividend will be paid/dispatched on or before November 23, 2024, subject to applicable taxes," informed the company to stock exchanges.

Nuvama Wealth Management Financials

Nuvama Wealth Management's net profit jumped by 77.47% to Rs 257.64 crore in the September 2024 quarter compared to Rs 145.17 crore in the September 2023 quarter. In the quarter that ended in September 2024, sales increased 42.99% to Rs 1051.35 crore, up from Rs 735.26 crore in the quarter that ended in September 2023.

Commenting on the performance Ashish Kehair, MD & CEO of Nuvama Group said, "We are pleased to share our input metrics are trending good, driving meaningful growth of the organisation. Our half-yearly revenues grew by 55% and profits doubled YoY. In last six months we have formed more client relationships than what we did last year. Our client assets have grown even faster crossing milestone of Rs 4 trillion supported by client's trust and market momentum. We continue to deepen these relationships by offering best-inclass exclusive solutions and through various technology interventions.

"In Wealth Management we continue to attract talent and expand. In last 12 months we have added 350 RMs, established our presence offshore and deepened our domestic presence beyond tier 1 cities with latest addition being Goa. We are very pleased with the growth in Asset Management business, and it having crossed ten thousand crore mark in ~3 years of age. With our integrated platform offering we have seen, increasing traction from institutional clients and growth in our market share as we serve their professional and personal needs through Capital Markets and Private Wealth propositions respectively. We remain extremely bullish with the market opportunity and are poised to further scale and serve the rapidly increasing client base and their needs," he further added.

Nuvama Wealth Management Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "NUVAMA is currently trading around the 7,000 level, consolidating within a range at higher levels after a recent rally. The stock has shown strength, forming a series of higher highs and higher lows over the past few months, which indicates a continuation of the overall positive trend. However, the consolidation phase suggests that the stock may need a catalyst to break out and gain further momentum. A buy opportunity would be confirmed only if NUVAMA breaks above its recent high, providing a clear signal of strength."

Traders are advised to wait for a decisive breakout before considering fresh long positions, as this would offer a more reliable entry point in alignment with the ongoing uptrend. Without this breakout, the stock may continue to fluctuate within its current range. Currently, the RSI is around 55, placing it in the neutral zone, which indicates a balanced momentum without significant overbought or oversold conditions. The stock is also trading near its 20-day and 50-day EMAs, suggesting it is trying to take support from these levels. This setup indicates that if the support holds, it could act as a base for further upward movement, especially if accompanied by strong buying interest," the analyst further added.