Buy 360 ONE WAM; target of Rs 1240: ICICI Securities

Moneycontrol • 11 days ago

Original source

Key Investment Pillars

  • 360One's strong earnings trajectory is expected to reach ~INR 17bn PAT in FY28E, driven by the growth of India's wealth management industry and the company's franchise strength.
  • The company maintains a balance between recurring and transaction revenue, with a focus on optimizing cost-to-income ratio.
  • Healthy recovery in organic Annual Recurring Revenue (ARR) AUM flows and stable Transaction Brokerage Revenue (TBR) in H2FY26 and H1FY27.
  • Strategic ambition to double market share among client families (above INR 100mn) over the next 3-5 years.

Thesis Validation Checklist

  • Investors should watch for ARR AUM growth, driven by net flows and MTM gains, as well as the company's ability to optimize its cost-to-operating-income ratio.
  • The success of new businesses and acquisitions, such as ET Money and B&K Securities, will be crucial in driving growth.
  • Management's guidance on cost-to-operating-income ratio improvement and tangible RoE target of 20% will be key indicators of the company's performance.