For Nuvama Wealth, Bernstein has a price target of ₹9,790, which implies a potential upside of 27% from current levels, while for 360 ONE WAM, the ₹1,410 price target implies a potential upside of 26% from Wednesday’s close.
Bernstein is of the view that India’s rich will continue to get richer with an estimated 3 million households holding over $2.7 trillion in liquid financial wealth, according to their estimates.”With rising return expectations and product complexity, the demand for professional advice is growing,” Bernstein wrote in its note, adding that it expects specialised wealth managers to benefit with a long growth runway. These wealth managers can grow from $300 billion in Assets Under Management (AUM) to $1.6 trillion over the next decade, implying a Compounded Annual Growth Rate (CAGR) of 18%, Bernstein said.
Lets take a look at Bernstein’s recommendations on each of these stocks:
Nuvama Wealth
The stock is Bernstein’s top pick from within the space, leveraging its four growth engines of wealth management for HNIs and UHNIs, clearing services and asset management. Although the clearing business is less understood, it stands out for its 40%-plus Return on Equity (RoE) that it generates.”While near-term headwinds are expected due to the ongoing regulatory action impacting one large client, we remain positive on the medium-term growth, expecting nearly 25% growth in profits and 29% RoE beyond a soft financial year 2026,” Bernstein wrote.
360 ONE WAM
The stock, according to Bernstein, is a leader in the wealth and alternatives asset management, and is expanding beyond the top cities and into the large HNI space.
It is also transitioning into a full stack wealth manager with acquisitions and a strategic partnership with UBS, which are structurally positive.
Bernstein expects a pre-tax profit growth of close to 20% for 360 ONE, along with RoE of close to 20% by financial year 2028, despite the drag from equity infusion or issuance.
Anand Rathi Wealth
Bernstein’s “market-perform” rating on Anand Rathi Wealth comes with a price target of ₹2,580, which implies a potential downside of 3.6% from current levels.
The brokerage said that despite robust profit growth and over 40% RoE that the company deliver, its reliance on market-linked debentures for over half its revenue has them concerned on risks and valuations.
“While attractive for clients and distributors, the need for careful hedging means any risk management flaw could impact growth for the distribution business,” the brokerage said.
All eight analysts having coverage on Nuvama Wealth have a “buy” recommendation on the stock.
13 analysts have coverage on 360 ONE WAM, of which, 10 have a “buy” rating and three say “hold.”
Shares of Nuvama Wealth have risen 8% in the last one month, while those of 360 ONE WAM are down 2% during the same period. Anand Rathi Wealth has been among the outperformers here with a 28% jump in the last one month.
