Buy 360ONE WAM; target of Rs 620: Motilal Oswal

Motilal Oswal's research report on 360ONE WAM

The company’s total revenues for the quarter grew 8% YoY to INR 4b. This is in line with our estimates. Total opex grew 25% YoY and came in at ~INR2b, 12% higher than our estimates. Increased employee cost and ‘other expenses’ led to higher opex for the quarter. Employee costs increased 22% YoY. The total ESOP cost estimated ~INR 1- 1.15b will be amortized over a period of seven to eight years. The cost/income ratio increased sharply by ~700bp YoY to 51.6% (est. 46%). PBT for the quarter came in line with our estimates at ~INR2.3b (as ‘other income’ came in higher than expectations). However, PAT grew 18% YoY to INR1.9b. Reduction in overall taxes led to a PAT beat of ~6%. Total AUM is up 22% YoY to INR 3.83t, with continued focus on scaling up ARR assets. ARR AUM was up 33% YoY at INR1.9t. The Board has approved an interim dividend of INR4.

Outlook

We broadly maintained our estimates for FY24/FY25. We retain our BUY rating with a one-year TP of INR620 (based on 25x Mar’25E EPS).