Considering the growth opportunities and synergies from the B&K acquisition and UBS collaboration, structural opportunity in wealth management along with a new segment (HNI) and the play on alternatives through the asset management segment, the brokerage maintains its multiple at 35x on FY27E EPS of Rs 33.5. The brokerage now factors in additional dilution due to UBS buying 4.95% stake in 360One and added 20.5 million new shares, expecting the deal to be completed before FY27E.
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ICICI Securities Report
We back the business trajectory prospects of 360 One WAM Ltd. driven by multiple growth opportunities ahead basis:
Better execution in active ARR AUM flows aided by deepening wallet share of existing client segment beyond tier-1 in wealth management and new mandates in AMC.
Flows from the UBS strategic tie-up/HNI segments.
Gradual restoration of cost to income towards mid-40s.
Steadier trajectory of transaction-based revenue post the acquisition of B&K Securities.
Key risks to the stock include adverse MTM movements, decline in retention rates, lower than-expected flows, cost escalations and employee attrition. However, the business' nature is more resilient under threat of weak market conditions compared to most AUM-based plays.
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