A leading wealth and investment management firm, renowned for its comprehensive financial solutions, has made waves in the market with a significant acquisition announcement. Despite strong year-over-year growth in revenue and net profit, the company’s stock faced downward pressure as investors digested the implications of its $205 million strategic purchase of B&K Securities, backed by Bain Capital.
Share Price Movement
The share price of 360 ONE WAM Limited went down 12.21 percent to Rs. 945 per share on Tuesday, a decrease from its previous close of Rs. 1,076.55 per share. The market capitalisation now stands at approximately Rs. 37,631 crore as of January 28, 2025.
Recent Update
The company entered into a definitive agreement to acquire Batlivala & Karani Securities, one of India’s oldest brokers, for Rs. 17.74 billion ($205 million). This move, backed by Bain Capital, aims to expand its retail and institutional investor base alongside high-net-worth clients.
Additionally, 360 One will purchase B&K Finserv, a unit of the Batlivala & Karani group, for Rs. 1.1 billion in cash.
The total payment includes Rs. 6 billion in cash and the rest in stock at Rs. 1,174.13 per share. These acquisitions will enable 360 One to provide broking services across ultra-high-net-worth, institutional, and retail market segments.
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Q3 Financial Highlights
The company reported Q3 FY25 revenue of Rs. 760 crore, reflecting a 20.6% YoY growth from Rs. 630 crore in Q3 FY24 but an 11.2% QoQ decline from Rs. 856 crore in Q2 FY25. Profit stood at Rs. 276 crore, showing a 12.7% YoY increase from Rs. 245 crore in Q3 FY24 and a 43.8% QoQ rise from 192 crore in Q2 FY25.
Competitors
Jio Financial Services, Motilal Oswal Financial Services, Anand Rathi Wealth, Nuvama Wealth Management, and Max Financial Services are key competitors of 360 One Wealth in the wealth and financial services sectors.
360 ONE WAM has a P/E of 42.35, which is higher than industry P/E of 20.7.
Market Outlook
India’s financial sector is rapidly growing, with strong growth in existing firms and new entities like payment banks entering the market. While dominated by commercial banks, other areas like digital gold investments and insurance are expanding. The government supports this growth through policies like higher FDI limits in insurance. Credit, insurance, and investment access is increasing in rural areas, while wealth management and mutual fund penetration offer significant growth potential. The introduction of a Digital Rupee further boosts innovation in the sector.
Written By Fazal Ul Vahab C H
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