Motilal Oswal retains 'Buy' on 360 ONE WAM, sees 18% upside; here's why

Motilal Oswal Financial Services (MOFSL) has retained its Buy rating on wealth and asset management firm 360 ONE WAM, citing strong gross flows across both businesses, aided by the onboarding of new teams.

 

At the current market price of ₹1,145, the brokerage has set a target price of ₹1,350, implying an upside of about 18 per cent.

 

"360 ONE offers a compelling structural growth story anchored in India's expanding wealth and asset management market. The company continues to drive strong gross flows across both wealth and asset management, supported by the onboarding of new teams. The B&K acquisition and UBS collaboration have enhanced the company’s international footprint, broadened client access, and strengthened its transactional platform. Operating leverage and cost synergies from integrations are expected to improve profitability going forward, as new businesses scale and the CI ratio declines," MOFSL said in its report.

 

 

On a consolidated basis, MOFSL expects 360 ONE to report an operating revenue CAGR of 20 per cent over FY25-28. Improving relationship manager (RM) productivity, along with operational efficiencies from scale, is likely to drive a PAT CAGR of 21 per cent, with the cost-to-income (CI) ratio gradually declining to 46-47 per cent from 49 per cent in FY26.

 

"We adopt a sum-of-the-parts approach, valuing ARR at 40x Dec’27 and TBR/other income at 20x Dec’27 to arrive at a fair value of ₹1,350. Reiterate Buy," said MOFSL. 

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Meanwhile, here are the other key factors MOFSL cited for retaining its positive stance on 360 ONE:

Expanding market opportunity: Rising HNI population and increasing adoption of advisory-led wealth platforms are expected to support long-term double-digit AUM growth for scaled players such as 360 ONE WAM.

 

Strong UHNI platform: Wealth ARR AUM has grown from around ₹580 billion in FY21 to about ₹2 trillion currently. Continued engagement and higher wallet share are expected to drive nearly 1.5x growth in ARR AUM by FY28, supported by a healthy ARR revenue mix of over 70 per cent and stable flow momentum of 12–13 per cent of opening AUM.

 

Strategic acquisitions and collaborations: The acquisitions of B&K and ET Money, along with the UBS collaboration, have positioned 360 ONE as a full-stack wealth ecosystem. These initiatives enhance client stickiness, diversify revenue streams and expand addressable markets. B&K supports fundraising requirements, UBS strengthens the offshore offering, and ET Money provides a scalable, low-cost digital acquisition channel.

 

Robust AMC business: 360 ONE’s asset management arm spans private equity, private credit, PMS and institutional mandates. Alternative AUM has increased from ₹325 billion in FY22 to ₹455 billion currently and is expected to benefit from India’s expanding private markets. AMC AUM is projected to reach around ₹1.3 trillion by FY28 from ₹844 billion in FY25.

 

MOFSL noted that near-term cost pressures from RM hiring and the integration of B&K, UBS and ET Money will keep the CI ratio elevated at around 49 per cent in FY26. However, improving RM productivity and operating leverage are expected to bring it down to 46–47 per cent over time. 

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