360 One Wam - Growth Momentum Intact Despite Near-Term Cost Pressures: Motilal Oswal

Motilal Oswal Report

360 One Wam Ltd. retains its niche positioning within the wealth management business, supported by a track record of innovative product offerings. The company operates with a strong team leader-driven model, resulting in low attrition rates at both the client and senior banker levels.

The management’s decision to venture into new domestic geographies and target the high net-worth individual category besides global markets is likely to spur the next leg of growth and have a positive impact on the topline from FY25 onwards.

In terms of costs, continued investments in new businesses will keep the costs elevated in H1 FY25. Post which, CIR is expected to improve to 47.5% by the end of FY25 and further improve to 45.6% in FY26.

We expect 360 One to register an annual recurring revenue assets under management compound annual growth rate of 23% over FY24-26. This, along with improvement in CIR, will translate into an earnings CAGR of 20%.

Also, 360 One Wam will report a healthy return on equity of 31% by FY26 and maintain a healthy dividend payout of 80%.

We reiterate our Buy rating on the stock with a one-year price target of Rs 850 at 27 times FY26E earnings per share.

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