Buy 360ONE WAM; target of Rs 550: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on 360ONE WAM

360 ONE WAM (360ONE), erstwhile IIFL Wealth Management, is well placed to tide over a difficult environment in terms of savings, wherein the equity markets have been volatile and interest rates have been rising. With a wide product portfolio, 360ONE is capable of countering the cyclicality as it is seeing strong traction in credit products and advisory mandates (IIFL One inflows of INR84b in 9MFY23 v/s INR35b in FY22). In order to grow ARR AUM, 360ONE is focusing on a five-point strategy: 1) increase wallet share among existing clients, 2) expand into new geographies, 3) increase share in inter-generation wealth transfer, 4) chase new money and 5) scale up AMC. Retentions could be under pressure as the asset mix moves toward fixed income and as competitive intensity increases. 360ONE aims to improve the efficiency of RMs by providing tech support to them. The number of families per RM is expected to increase from 30-35 to 40-45. A product for the mass affluent is expected to be launched in 1QFY24 under a separate brand. In the initial stage, the target would be key management personnel of businesses, whose promoter families are 360ONE clients. In terms of costs, the company expects fixed employee costs to rise in line with general inflation and expects variable pay to track AUM growth. Tech-related expenses are likely to be sustained as the company is developing a product for the mass affluent market and scaling up technology to support RMs.

Outlook

We expect 360ONE to register an AUM CAGR of 13% during FY23-25 and the cost-toincome ratio to decline to 44.2% in FY25E from 45.2% in FY23E, translating into an earnings CAGR of 13%. With a healthy dividend payout of 70%+ and RoE of 25% by FY24, we find valuations reasonable at P/E of 17.7x FY25E EPS. Maintain BUY with a 1-year price target of INR550 (adjusted for bonus and split) at 22x FY25E EPS.

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360ONE WAM - 13 -03 - 2023 - moti