Jefferies positive on brokerage stocks
Jefferies expects Indian wealth management firms' assets under management to double by FY27. "IWMs (Indian wealth managers) are gaining share in the ultra-HNI segment (80% of market) where global players are receding and smaller banks lack bandwidth for personalised solutions," said the brokerage's analysts Jayant Kharote and Prakhar Sharma in a client note.
Mumbai: Brokerage has initiated coverage on wealth managers 360 One and Nuvama with buy ratings as it believes the industry is well-placed to ride on India's and growing flows into the .The firm has set a of ₹900 on 360 One, implying an upside of 25% over Tuesday's closing price of ₹721.5.
The price target on Nuvama is ₹6,000, implying gains of 14% over Tuesday's closing level of ₹5,220.
Jefferies expects Indian wealth management firms' assets under management to double by FY27. "IWMs (Indian wealth managers) are gaining share in the ultra-HNI segment (80% of market) where global players are receding and smaller banks lack bandwidth for personalised solutions," said the brokerage's analysts Jayant Kharote and Prakhar Sharma in a client note.
On Tuesday, the shares of wealth managers were among the top gainers on the exchanges. and soared nearly 11% each. Nuvama was up 3.43% and 360 One ended almost flat over the previous day.
Jefferies said Ultra High Networth Individuals (or UHNIs) in the country are estimated to grow at a compounded annual growth rate of 8% to 20,000 individuals by 2028.
Source: Stocks-Markets-Economic Times
