Do you have answers to:
- Why their cash flow profile is so poor? : Conistently hugely negative Operating cash flows over last 5 years
Wealth mgmt biz throws a lot of cash. Why its not getting reflected in CFO ?
If you compare to Anand Rathi wealth, their cash flows are positive & they pay dividends too - When does Nuvama plan on starting a dividend payout ?
- Wealth mgt. forms around 60% of Sales. The balance 40% is from all the rest (AMC, IB, Broking, Loan against Shares portfolio)
What’s the yield or NIM on their LAS book ? In bull markets like current one, clients may get over-levered. Are they protected?
Why is the gearing D/E increasing every year 2.4 currently?
What gearing level do they plan to settle down on? - Why not get rid of the LAS portfolio which necessitates taking on debt and just focus on the high ROE wealth mgmt, AMC and IB and institutional broking bizs only?
I don’t know if the above questions have already been answered by the mgmt. If not, I plan on asking these in the coming Q1 F25 con call.
The long term Wealth mgt story is a good trend to play on, but, there are risks with this co. having negative cash flows & not paying any dividend.
Lets hear your thoughts
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