Target: ₹1,070
CMP: ₹1,009.30
360 One WAM had a strong quarter with the recurring AUM growing 41 per cent y-o-y (+10 per cent q-o-q) to ₹2.4 lakh crore, with its 360 One Plus business posting the highest growth. The net flows remained strong at ₹9,800 crore in Q2-FY25 (₹15,300 crore for H1-FY25) and we increase our FY25 numbers from ₹25,000 crore to ₹28,000 crore.
Yields remained soft owing to multiple factors and we lower our yield forecast by 2-3bps over FY25-FY27. Riding on a strong AUM growth, PAT grew 33 per cent y-o-y to ₹250 crore at end Q2 and we therefore revise the number upwards by 3-4 per cent over FY25-FY27.
The stock is currently trading at 32x Sep’26 EPS. Factoring in a robust model, strong fundamentals and supportive macro factors, we continue to value the stock at an unchanged 33x Sep’26E EPS – at about 10 per cent premium to +1sd from long term mean. This coupled with estimate revision translates to revised target price of ₹1,070 (vs ₹1,050).
We maintain Reduce rating owing to the stock run up. Key risks: slowdown in AUM growth, attrition (TL and client), etc.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.