Buy 360 One WAM; target of Rs 1150: Motilal Oswal

Motilal Oswal's research report on 360 One WAM

In its FY24 Annual Report, 360 ONE WAM (360 ONE) outlined the emerging growth opportunities in the Wealth Management industry in India and expects a 13-14% AUM CAGR over the next 4-5 years. The drivers for this growth will be: 1) an increase in the number of UHNIs and HNIs, 2) an increase in the wealth of existing HNIs, and 3) wealth transfer between generations. The company is likely to focus on diversifying its customer base from the existing INR250m+ net worth customers to adding INR50-250m net worth customers in India as well as overseas. This would present a huge opportunity to double its market share over the next few years from 4-5% currently. In addition, 360 ONE is looking to diversify its geographical presence from the top cities and metros to tier II and tier III cities (i.e., shift in focus from the traditional 10-15 cities to over 60 cities over the next few years, reflecting a significant demographic transformation).

Outlook

We have also modeled higher costs due to these new business initiatives. We reiterate our BUY rating with a one-year TP of INR1,150 (based on 33x Mar’26E EPS).