I needed more clarity on their business financials. Usually companies dress up their financials prior to an IPO, I wanted to get a full year data prior to taking a stance on its return metrics and valuation.
As well I took a calculated gamble of there being some selling pressure initially in Nuvama because of the quantum of investors who had invested in parent co Edelweiss just to unlock value from Nuvama.
Nuvama has a lot of equity capital invested in itself and so far hasn’t delivered proportionate returns as compared to some of its peers. Hence, I felt for now, till there’s clarity on its financials and return ratios, it does not deserve to trade at these valuations.
However, having said that, Edelweiss Wealth is a very old player in the industry, has some of the best talent working for them and now has an international parent with deep pockets with resources to support its growth. Hence, once there’s clarity and the selling pressure is absorbed, I’ll look to buy again
| Subscribe To Our Free Newsletter |
