One of the largest private wealth management firms in India surged more than 5 percent to Rs.1,065.00 per share after reputed brokerage firm UBS set a target price indicating potential growth.
Share Price Movement
In Thursday’s trading session, 360 ONE WAM Ltd’s share price reached an intra-day high of Rs.1,065.00 per share, marking a 5.4 percent increase from its previous close of Rs.1,010.00 apiece. Over the past year, the stock has delivered multibagger returns exceeding 100 percent.
Target Recommendation
Shares of 360 One Wam Ltd. formerly known as IIFL Wealth Management are in focus after UBS initiated coverage with a ‘Buy’ recommendation and a price target of Rs.1,250 per share, suggesting a 21 percent upside from current market price.
UBS expects faster growth in core average recurring revenue (ARR) and assets under management (AUM) compared to the overall business, along with improved core profitability due to higher operating leverage. They predict return on equity (RoE) will rise from 24.5 percent in FY24 to 32 percent by FY27 and 36-37 percent by FY29.
In June, 360 One Wam agreed to acquire ET Money, enhancing its client coverage and solidifying its position as a leading wealth management firm.
Assets under Management
360 ONE’s Assets under Management stand at Rs 5,21,208 crore, comprising ARR AUM of Rs 2,21,287 crore and transactional/brokerage AUM of Rs 2,99,921 crore.
In Wealth Management, ARR AUM increased to Rs 1,41,635 crore, reflecting a 39 percent year-over-year growth, with the 360 ONE Plus proposition seeing a 71 percent rise.
Asset Management’s ARR AUM reached Rs 79,652 crore, driven by growth in listed equity at 42 percent, credit at 23 percent, and private equity at 11 percent.
Financial Overview
In its latest financial update, the company reported remarkable net sales of Rs.849 crore for Q1 FY25, reflecting a 48 percent increase from Rs.573 crore in Q1 FY24. Moreover, net profits surged by 33 percent to Rs.244 crore in Q1 FY25, compared to Rs.184 crore in Q1 FY24, highlighting significant growth during this period.
About the company
360 ONE WAM Ltd, formerly known as IIFL Wealth Management, is a leading private wealth management firm in India, specialising in tailored financial solutions for high-net-worth
individuals and institutions. As of June 2024, it manages assets worth approximately Rs.5.21 lakh crore (around $63 billion) and offers comprehensive services including wealth advisory, asset management, and lending solutions
Written by – Siddesh S Raskar
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