360 ONE WAM Share: Jefferies and Citi Bullish with ‘Buy’ Rating, See Strong Upside

Synopsis: The shares of this capital market company could rise to 59 percent, supported by strong fund flows, healthy carry income, and steady ARR AUM growth, with solid earnings and re-rating potential.

The article outlines the growth and investment potential of a leading capital market company, highlighting strong fund flows, robust ARR AUM growth, and healthy carry income. It discusses Wealth and Asset Management performance, productivity gains, and brokerage targets, indicating significant upside and long-term earnings visibility for investors.

With a market capitalization of Rs 43,493 crore, 360 ONE WAM Ltd’s shares closed at Rs 1,068.50 per share from its previous day’s close price, trading at an over P/E of 37x compared to the industry average. The shares of this company have given a return of 16 percent since its listing in 2023.

Brokerage Target Rationale

Jefferies Financial Group sees a target of Rs 1,410, implying a 32 percent upside, supported by robust inflows, steady ARR AUM growth, and clear profit CAGR visibility. 

ARR AUM Growth and Profit Drivers: Stronger net flows drove ARR AUM growth of 31 percent YoY, reflecting robust client engagement and sustained asset accumulation. Expansion of the UHNI RM team, combined with healthy carry income, further bolstered profitability, positioning the firm for continued operational strength in the near term.

Outlook and Core Profit Trajectory: However, both flows and carry income are expected to normalise going forward. Jefferies projects a 20 percent CAGR in core profits over FY26–28, indicating steady long-term earnings growth supported by disciplined management and scalable business operations.

Citigroup has raised its target to Rs 1,700, or 59.1 percent upside, highlighting strong fund flows, healthy carry income, and potential for re-rating, signaling sustained investor confidence and growth prospects.

Rationale

Strong Flows and Carry Income: Flows and carry income remained exceptionally strong, reflecting robust client engagement and steady revenue generation. The firm continues to benefit from operational efficiency and market positioning, supporting healthy short-term performance and reinforcing investor confidence.

Productivity and Re-Rating Potential: Productivity gains are expected to materialise gradually, enhancing overall margins. With strong fundamentals and growth visibility, re-rating potential is viewed as high, signaling significant upside for long-term shareholders.

Strong Businesss performance

360 ONE manages total assets of Rs 7,11,398 Crs, with Rs 3,17,906 Crs in ARR AUM and Rs 3,93,492 Crs in Transactional/Brokerage AUM. Wealth Management saw ARR AUM rise 34.5 percent YoY to Rs 2,18,957 Crs, driven by strong growth in 360 ONE Plus (+41.7 percent YoY), Distribution (+30.3 percent YoY), and Lending (+32.0 percent YoY).

Asset Management Highlights: Asset Management ARR AUM grew 16.1 percent YoY to Rs 98,949 Crs, led by Private Equity (+16.0 percent YoY), Real Assets (+72.1 percent YoY), and multi-asset solutions (+59.8 percent YoY). Overall, 360 ONE serves over 8,500 families and corporates, showing solid and consistent growth across its business segments.

About the Company 

IIFL Wealth Management Limited, founded in 2008, is one of the largest private wealth management firms in India. The company mainly acts as a wealth manager and provides services relating to financial products distribution, advisory, portfolio management services by mobilizing funds and assets of various classes of investors including High Networth Individuals. 

Financial Highlights: The revenue from operations grew by 51 percent to Rs 1,181 crore in Q3 FY26 from Rs 780 crore in Q3 FY25, and EBIDT grew by 63 percent to Rs 725 crore in Q3 FY26 from Rs 444 crore in Q3 FY25. Accompanied by a net profit growth of 18 percent to Rs 327 crore in Q3 FY26 from Rs 276 crore in Q3 FY25, resulting in an EPS growth of 13 percent to Rs 8.08 per share in Q3 FY26.

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