Nu Holdings Ltd

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Nu Holdings Ltd (NYSE: NU) is a Brazil-based holding company, which engages in the provision of digital banking services. The Company offers its customers products throughout the five financial seasons: spending, saving, investing, borrowing, and protecting. Its spending solutions are designed to help customers pay for goods and services in their everyday lives with a customized credit line or instantly through a mobile phone, while collecting loyalty points and rewards on applicable transactions.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 7.77% in the last three months, similarly a correction of 17.86% in past six months.
• The stock is around the middle zone of its 52-week range of USD 16.14 and 52-week low price of USD 9.01. Post the announcement of FY24 results the stock has corrected by almost 7.13%, with the current price near an important support levels of USD 11- USD 12.
• The price is currently trading between both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 65.92.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~39.28% of the total shareholding, signifying concentrated shareholding. Baillie Gifford & Co., and Capital Research Global Investors., are the biggest shareholders, holding the maximum stake in the company at 7.04% and 6.34%, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of FY24:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 7.77% in the last three months, similarly a correction of 17.86% in past six months.
• The stock is around the middle zone of its 52-week range of USD 16.14 and 52-week low price of USD 9.01. Post the announcement of FY24 results the stock has corrected by almost 7.13%, with the current price near an important support levels of USD 11- USD 12.
• The price is currently trading between both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 65.92.

4.2 Fundamental Valuation

Valuation Methodology: Price/ Book Value per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 01, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.