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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.
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