Nuvama Wealth Management Ltd

The provided document pages do not explicitly mention current or expected order book or pending orders details for Nuvama Wealth Management Limited. The discussion focuses primarily on business models, revenue sharing with relationship managers (RMs) and external wealth managers, attrition rates, net new money trends, capital markets performance, and strategic priorities in wealth and asset management. Key points related to business outlook but not specific order book data: - Capital markets had an exceptional quarter, with INR 90 crores earning; expected to sustain around INR 80-85 crores for next two quarters. - Investment banking (IB) pipeline visibility up to six months suggests similar performance to past nine months. - Continuous RM addition at 15% CAGR expected to drive growth. - Wealth and asset management remain focus areas with long runway for growth. No explicit order book or pending order figures were disclosed.

- Nuvama Wealth Management is currently focusing on deploying existing private market assets (INR 4,900 crores) with about INR 2,500-3,000 crores left to deploy. - They plan to raise new domestic funds and an international offshore family office fund once deployment reaches 60%-70%. - No new fundraising (debt or equity) is planned until current deployment targets are met. - The company is cautious about launching new private credit funds due to market crowding and potential risk mispricing. - Dividend payout policy: They intend to shift towards dividend payouts rather than reinvesting all cash flows back into margin funding or loans. - No aggressive capital raising is planned for now; focus remains on controlled growth and profitability.

- Expansion into NRI segment by building dedicated relationship teams and establishing investment "pipes" to reduce friction; expected impact in about a year (Page 15-16). - Launch of a commercial real estate fund in a 50-50 JV with Cushman to leverage their operational expertise (Page 5). - Careful monitoring of private credit fund launch; decision to wait due to market crowding and risk mispricing concerns (Page 5). - Focus on building a three-way offshore platform serving Indian families offshore, inbound India needs of offshore clients, and offshore needs of offshore clients to strengthen value proposition and RM retention (Page 5). - Asset deployment ongoing for private market funds with INR 4,900 crores AUM and about INR 2,500-3,000 crores yet to deploy; new fundraise planned after this phase (Page 5). - No aggressive offshore push currently due to cost and revenue visibility concerns (Page 5).

- Wealth and asset management is the primary focus area with a long runway of growth due to India's nascent market and under-penetration (~15%) compared to global markets (30-90%). - Revenue growth in wealth management recorded 17%-19% year-on-year for Q3 FY24; capital markets revenues grew 79% year-on-year indicating strong momentum. - Net new money from clients is expected to increasingly come from existing clients as the client base grows, with a split likely shifting toward 80% from existing clients over time. - RM capacity is targeted to grow around 20% year-on-year, supporting expansion and deeper client penetration. - Organic revenue growth drivers include increasing client wallet size (estimated 15% annual growth), new client acquisition, RM productivity improvements, and product diversification. - Capital markets revenues (custody, clearing, investment banking, institutional equities) may moderate slightly but are expected to remain stable in near term. - Overall industry growth drivers include rising disposable wealth, increased penetration, and expanding client base.

- Wealth management and asset management are the primary focus areas for long-term growth due to their sunrise sector characteristics in India. - The industry is under-penetrated in India (~10%-15%) compared to developed countries (~80%-90%), indicating significant growth potential. - Organic growth driven by increasing client assets, acquisition of new clients, and rising productivity of existing RMs is expected. Existing clients’ wallets are projected to grow about 15% annually. - Revenue growth comes from a blend of market performance, increasing client wealth, and product offerings rather than purely market sentiment. - The company expects revenues and profitability to improve steadily; wealth management revenues grew 17%-19% YoY recently. - Nuvama is targeting gradual efficiency improvements, aiming to reduce revenue payout ratios to RMs from 20%-25% to around 17%-18% over 3-5 years to enhance margins. - Dividend payout structures may evolve, with less focus on reinvesting cash flows into lending and more on shareholder returns. - Overall, a 20%-25% industry growth is easy to assume over the next 10 years, implying potential EPS growth in line or higher, aided by operating leverage.