Fundamental analysis of Nuvama | FII increasing stake ft. Mr. Akshay Jogani

"if you think long term, then it can be at 5%, 10%, 15%, 20%. It has already happened globally. It is possible that this growth that has come, if we think long term, the growth can still continue for a long time."

"Pre-Covid, the industry AUM was at ₹ lakh crore, today it is around 7 lakh crore. Can such growth happen in the future?"

"Nama's wealth growth has been absolutely phenomenal, and obviously, the fact that the markets have done well has also helped the business."

"if you did nothing this year, except retain clients, and then the market grew by 20%, it's likely that your revenue would automatically grow by 20% because assets grew."

"So, I think they will be one of the Key Beneficiaries of Growth in Assets Outside of Metro and Tier 1 Cities"

"And because capital markets have done well, market caps are large, fund sizes have increased, so this business has also given a very strong performance."

"Third, there's the AMC business, which is very small right now, but it will be able to grow fast."

"The third risk is that there is a risk of yield compression. For example, if a customer of Rs 50 crore, if the NMA of a customer Managing that when it is 500, the customer will not give the same yield that we discussed. So, if on 50 crores, he was giving you revenue of maybe ₹1 lakh, then when he becomes 550 or 100, he will not give 50 lakhs but will probably give only 40 lakhs. The reason for this is that if your AVM grows by 20%, then it is possible that your revenue may grow by only 18%."

"One, this business is very capital market dependent in the near term. This means that if the capital market is not booming, then it is also possible that their AUM growth may not decrease. Now, if the capital market remains flat or negative for any year, then obviously their AUM will also decrease along with it."