Nuvama Wealth Management: Proxy to Affluent India

Thanks for the detailed answers. Appreciate it !
I understand the +ves with this co., their guided growth, operating leverage benefits and all.
However, the key is to understand risks that lurk ahead if one chooses to invest at the current price.
I am still wondering:

1. Even if you give out loan against shares to clients, you are earning a +ve net income NIM on the same. That should get reflected in cash flow from operations sooner or later. CFO = “Cash collected from customers” – “Cash paid to suppliers”
   Look at it that way (rather than working from Net income & making adjustments)
   And the “WC items” you mention, it cannot keep on ballooning every year in a way that you have -ve CFOs every year for the last 5 years while +ve on EBITDA and PAT.
2. Paying out Dividends are essential if you are engaged in a business that throws out a lot of cash. It is to ensure that Shareholders trust your numbers.
   I mentioned Anand Rathi because they have grown at 25%+ cagr and have the same future guidance also, while also maintaining a great dividend payout.
   (360 WAM is much difficult to project & analyze because they house a lot of things inside: AIFs, Funds & what not. So i dont look at that)
3. Becoming a 1 stop solution (aka full service provider) is a good thing. But, does’nt offer much benefit in the sense you think that a particular customer will get everything done by Nuvama only. Because the HNI customer will pick the most price efficient vendor for the service he desires. This is financial services after all. (The same thing happens in IT services where the customer follows a multi-vendor strategy. Nobody likes to depend for everything on just 1)

*The major concern for me is: Are their P&L numbers genuine or inflated?
If the mgmt. can answer why the CFOs are consistently hugely negative & when can we expect to see +ve numbers there, that will help.