Mumbai-based brokerage Motilal Oswal Financial Services Ltd (MOFSL) has reiterated a BUY rating on Nuvama Wealth Management, setting a one-year price target of Rs 1,860 — implying 23% upside from the stock's current market price of Rs 1,510. In a research note dated June 11, analysts Prayesh Jain, Nitin Aggarwal, Kartikeya Mohata and Muskan Chopra describe Nuvama as a four-engine compounding machine, blending ultra-high-net-worth wealth management, mid-market advisory, institutional capital markets, and an emerging asset-management franchise. The brokerage forecasts an 18% revenue and 19% profit CAGR through FY28, and calls the stock one of the cheapest in India's capital-markets ecosystem.

The Call, In Brief

Motilal Oswal's coverage team arrived at its Rs 1,860 target using a sum-of-the-parts (SoTP) methodology, valuing each of Nuvama's businesses separately before combining them. The target implies a forward FY28 price-to-earnings multiple of 24 times, a step up from the 19 times multiple at which the stock currently trades — a gap the brokerage attributes to the market undervaluing Nuvama's blend of recurring fee income and improving margins.

Where the Stock Stands

A Four-Engine Business

Nuvama's revenue base is split across four distinct franchises, each with a different growth and risk profile.

Mid-Market Wealth: Riding the MPIS Wave

Nuvama Wealth, the firm's mid-market advisory arm, managed average client assets of roughly Rs 1.1 trillion in FY26, up 14% year over year, and posted record net new money of Rs 147 billion. Managed Products and Investment Solutions (MPIS) drove about 61% of that inflow and now accounts for roughly 59% of segment revenue, lending the business a stickier, fee-based character than its older brokerage-led model. Motilal Oswal credits a reshaped relationship-manager workforce, an emerging GenAI advisory pilot, and retention holding near 90 basis points for its forecast of 17% growth in client assets and 16% revenue growth annually through FY28.

Nuvama Private: From UHNI Mumbai to Offshore Dubai

The ultra-high-net-worth arm grew revenue 24% in FY26, powered by a 32% jump in recurring income as fee-generating assets climbed 21% to Rs 540 billion. International expansion is gathering pace too: a Dubai office has reached breakeven, a new Singapore outpost is deepening coverage of non-resident Indians, and a second Dubai location is reportedly in the works. Motilal Oswal expects the franchise to deliver 22% growth in fee-earning assets and 20% revenue growth a year through FY28.

Capital Markets and Custody: The Ballast

Asset Services — the unit providing custody, clearing and fund-accounting infrastructure to foreign portfolio investors and mutual funds — clawed back to a fresh quarterly revenue peak in the final quarter of FY26, having absorbed the exit of a major client earlier in the year. Institutional equities and investment banking told a different story, with revenue down 19% in FY26 amid muted IPO activity and tighter derivatives rules. Despite the softness, disciplined cost control kept the combined segment's cost-to-income ratio near 38%, and analysts still expect a 15% revenue CAGR through FY28.

Asset Management: A Costly Bet on Tomorrow

Fee-paying assets at Nuvama's asset-management arm grew 42% to about Rs 112 billion in FY26, even as overall segment revenue slipped 4% during a deliberate pause in new private-market fundraising. Operating losses widened to roughly Rs 326 million as the firm invested in talent and product development. A forthcoming asset-management-company license could eventually open the door to retail-style fund offerings and bank-channel distribution — a long-term margin lever the brokerage flags as a key, if distant, catalyst.

The Macro Backdrop: India's Wealth Explosion

Citing the Boston Consulting Group's 2026 Global Wealth Report, the brokerage notes that India is projected to add more financial wealth than any other emerging market through 2030. Rising entrepreneurship, digital onboarding, expanding SIP adoption beyond India's largest cities, and growing appetite for structured and passive products all feed the broader thesis for wealth managers like Nuvama.

Sum-of-the-Parts: Building the Rs 1,860 Target

Dividing the Rs 338.47 billion total by 182.1 million outstanding shares produces the brokerage's Rs 1,860 target price.

Risks Worth Watching

The Reserve Bank of India's tightened rules on securities-backed lending and on borrowings for proprietary trading, alongside a securities transaction tax hike on derivatives announced in the latest Union Budget, could create modest second-order volume effects, the report cautions — though it stops short of expecting a material earnings hit. Separately, SEBI's newly finalized brokerage caps on mutual-fund expense ratios landed softer than the market had initially feared, removing one overhang from the stock.

The Bottom Line for Investors

With shares changing hands at roughly 19 times projected FY28 earnings — among the lowest multiples in India's listed capital-markets space — Motilal Oswal argues Nuvama offers an unusual combination of growth and value. The brokerage's reiterated BUY call and Rs 1,860 target rest on confidence that the company's mix of recurring wealth-management fees, custody-business stickiness, and emerging asset-management optionality can sustain double-digit earnings growth even as trading volumes and IPO activity move in cycles.