SYNOPSIS:
Citi issued a positive 90-day call on 360 ONE WAM with a Rs. 1,615 target, expecting strong net-flow recovery, steady revenues, and improving momentum, supported by favourable valuations and early signs of inflow revival.
Shares of one of India’s largest wealth and alternative asset managers are in focus on the stock exchanges, after global brokerage firm Citi initiated a 90-day “positive catalyst” call with a potential upside of 44 percent.
With a market cap of Rs. 45,375 crores, shares of 360 ONE WAM Limited closed in the red at Rs. 1,120.45 on Tuesday, down by around 1 percent, compared to its previous closing price of Rs. 1,128.35 on BSE. The stock has delivered positive returns of around 3 percent in one year, but has fallen by over 4 percent in the last one month.
Brokerage Target & Outlook
Global brokerage firm Citi has initiated a 90-day “positive catalyst” call on 360 ONE WAM Limited with a target price upward to Rs. 1,615 per share. This implies a potential upside of more than 44 percent from its current price levels, driven by expectations of stronger-than-anticipated net flows in the second half of the fiscal year. The brokerage’s bullish stance is anchored in its view that a sharp rebound in net inflows could materially support the company’s growth momentum.
Citi noted that while gross flows in both the wealth and asset management businesses have stayed healthy for the past few quarters, net flows lagged due to advisor attrition and planned exits in the private equity segment. However, the September quarter marked early signs of improvement, indicating that the period of subdued net inflows may have passed.
The brokerage firm also noted that the September quarter showed early signs of improvement, indicating that the period of weak net flows may be behind the company. Citi expects the third quarter and the entire second half of the fiscal year to deliver stronger-than-anticipated inflows as momentum continues to build.
Citi added that carry income and transaction-based revenues should stay healthy, offering further support to overall revenue performance. At roughly 28x FY27 projected earnings, the brokerage views the stock’s valuation as reasonable and sees room for further upside as business trends strengthen.
Financials & More
360 ONE WAM reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 29 percent, from Rs. 865 crores in Q2 FY25 to Rs. 1,115 crores in Q2 FY26. Likewise, the company’s net profit increased during the same period from Rs. 245 crores to Rs. 315 crores, representing a rise of more than 28 percent YoY.
During the quarter, Assets under Management for 360 ONE stood at Rs 6,71,625 crores, consisting of ARR AUM of Rs 2,95,324 crores and transactional/brokerage AUM of Rs 3,76,301 crores.
360 ONE WAM LIMITED, formerly known as IIFL Wealth Management Limited, is engaged in services relating to financial products distribution, advisory and portfolio management services by mobilising funds and assets of various classes of investors, including High Net Worth Individuals (HNI).
The company is registered as a merchant banking firm with SEBI, and its wealth and asset management services include financial asset distribution, broking, lending, credit and investment solutions and asset and portfolio management.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
