Buy 360 ONE WAM; target of Rs 1400: Motilal Oswal

Motilal Oswal's research report on 360 ONE WAM

360 One WAM (360ONE) reported operating revenue of INR7.6b (in-line), reflecting a 30% YoY growth. For 1HFY26, revenue grew 20% YoY to INR14.2b. Revenue growth was driven by a 39% YoY growth in ARR income to INR5.5b (6% beat), and 9% YoY growth in TBR income to INR2.1b (in-line). ARR AUM rose 22% YoY to INR2.9t (in-line), while TBR AUM grew 34% YoY to INR2.2t (in-line), taking the total AUM to INR5.1t (+27% YoY). Cost-to-income ratio at 52.4% increased by 160bp YoY (MOFSLe – 53.8%), but revenue momentum resulted in a 25% YoY growth in operating profits to INR3.6b (7% beat). 19% miss in other income resulted in PAT of INR3.2b (in-line), which grew 28% YoY. For 1HFY26, PAT grew 23% YoY to INR6b.

Outlook

We have marginally upgraded our estimates to factor in the strong performance in 2QFY26, and expect the company to report a FY25-28 Revenue/PAT CAGR of 20%/22%. We adopt an SOTP approach valuing ARR at 45x Sep’27 and TBR/other income at 20x Sep’27 to arrive at a fair value of INR1,400. Reiterate BUY.