Nuvama Wealth scales fresh peak, 360 ONE WAM too jumps but retreats later as Jefferies sees re-rating potential

Stock market today: Shares of stockbroking and allied companies such as 360 ONE WAM and Nuvama Wealth traded mixed on Tuesday, April 9, after global brokerage Jefferies initiated a buy on the two stocks.

At around 11:38 am, shares of 360 ONE WAM traded with a tad cut after notching the day's high price of Rs 747.2 per share. While Nuvama Wealth, after marking its all-time high of Rs 5,373.4 in intraday trade, was trading at Rs 5,338.15, up 6 per cent.

Global brokerage held that Indian wealth managers are well placed to ride on the country’s economic growth and financialisation of savings. Further, it said that leading players will benefit from strong inflows and operational efficiencies. Jefferies believes the companies in the segment will deliver a 20–22 per cent CAGR profit, and AUMs will double over FY24–FY27E.

Additionally, the brokerage said that the rise in the share of trail fees to as much as 70–75 per cent by FY27E will improve earnings visibility and support valuation re-rating.

Considering all this, Jefferies has initiated a buy on 360 ONE WAM with a target of Rs 900, while on Nuvama Wealth, it has accorded a buy for a target of Rs 6,000.

Nuvama Wealth has gained 89 per cent in the last one year, while 360 ONE WAM has delivered 64 per cent returns to its investors during the window.

Increasing retail investor participation is also adding to the earnings potential of these companies, which is helping the country's capital market to strengthen.