Buy 360 ONE WAM Ltd for the Target Rs 1,300 by Motilal Oswal Financial Services Ltd
Building a wealth management powerhouse!
* Harnessing the golden opportunity: India’s USD30m+ population, currently at ~19,900, is expected to exceed 25,000 by 2031, while only ~15% of Indian wealth is professionally managed vs ~75% in mature markets. With 4,000+ UHNI families in an addressable base of 40,000-45,000, 360 ONE WAM (360 ONE) has significant headroom for client acquisition and scale.
* Advisory moat for wallet share gains: 360 ONE’s advisory proposition enables the company to build broader relationships with clients. With Wealth AUM/client rising to ~INR1.2b from ~INR0.9b in FY21, despite client base expansion from 1,825 UHNIs to ~4,000, we believe the company’s advisory moat can drive wallet share expansion and, in turn, AUM growth.
* Multiple levers for flows: We expect net flows of 15-18% of opening AUM, supported by sustained client additions and RM productivity. The planned addition of 30-40 RMs annually can significantly expand coverage from ~4,000 UHNI families currently. Further, improving RM productivity and wallet share gains provide a visible runway for sustainable 20-25% growth in wealth AUM.
* New vector for growth: The HNI business, with 60 RMs as of now, has the potential to scale materially from the current ~INR200b AUM on the back of new client additions as well as an existing pool of ~4,800 lower-AUM UHNI relationships, which can be migrated for better servicing and higher revenue.
* Monetizing funds from UBS: UBS referrals and the conversion of remaining warrants provide both flow and capital deployment optionality, with the ~INR15.8b warrant proceeds potentially supporting incremental lending and alternatives capacity.
* Strengthening transactional footprint: 360 ONE Capital enables higher wallet monetization and enhances capability to broaden products for the UHNI ecosystem. TBR is diversifying toward equity brokerage, IB, debt, and real estate, and we expect it to reach INR9b by FY28 (INR7.7b in FY26).
* Robust operating leverage: With the major investment phase largely behind, improving RM productivity, breakeven at HNI/ET Money, and scaling of the IB platform should bring the Wealth CI ratio toward ~51% by FY28, while stable AMC costs support group CI improvement to ~48%
* We forecast FY26-28 revenue/PAT CAGR of 18%/20%. We adopt an SOTP approach, valuing ARR at 36x FY28 PAT and TBR/other income at 20x FY28 PAT to arrive at a fair value of INR1,300. Reiterate BUY.
Dominating in India’s rapidly expanding UHNI pool
* India’s wealth landscape is undergoing a structural shift, with rising entrepreneurial wealth, strong capital-market participation, and increasing inter-generational wealth transfers driving rapid growth in the UHNI segment.
* According to Knight Frank’s 2026 Wealth Report, India has been among the fastest-growing markets with respect to USD30m+ UHNI population, with 63% growth over the past five years to ~19,877 in 2026, and the number is expected to grow further to 25,000+ by 2031.
* On the other hand, billionaire population is expected to expand 51% from 207 in 2026 to 313 in 2031 (among the top-10 fastest growing billionaire populations in the world).
* With the rapid rise in affluent households, multiple institutions are showing enthusiasm surrounding wealth management, including:
1) banks setting up a wealth management vertical
2) major corporations like Godrej stepping into the wealth management space
3) young firms getting investments to scale the business.
* The AUM of top-10 wealth managers of the country has crossed INR25t, with 360 ONE’s wealth management AUM inching closer to INR5t. However, only ~15% of Indian wealth is professionally managed compared to ~75% in matured markets, reflecting significant headroom for growth.
* 360 ONE is well-positioned to capture the opportunity, given its scale (20% FY21-26 CAGR of wealth management AUM), established UHNI relationships (4,000+ families and 600+ corporate treasuries), and breadth of services. The addressable market for the UHNI franchise spans 40,000-45,000 households, reflecting significant potential for client base expansion.
* 360 ONE’s moat lies in the strong advisory proposition reflected in 360ONE Plus AUM nearing INR1t in 1QFY27 from INR220b in FY21. While advisory is a lowyielding proposition, it creates a broader relationship around the client’s entire portfolio, enhancing the lifetime value of the client with 360 ONE. We expect 360ONE Plus AUM to expand at a FY26-28 CAGR of 35%, supported by robust inflows at 20-25% of opening AUM and yields stable at ~30bp.
* With a recent uptick in large liquidity events, an established advisory serves as a strong leverage to win high-value mandates as well as build a strong ecosystem that is difficult to replicate.
* We expect the recurring revenue AUM of 360 ONE to expand at a strong FY26- 28 CAGR of 35%, supported by robust flows in the core 360 ONE Plus proposition, consistent momentum in distribution assets, and a gradual rise in loan book. Yields are expected to remain stable at 72-75bp.
Valuation and view
* 360 ONE is a structural compounding play on India’s UHNI wealth pool, with the key upside triggers being sustained wealth flows, RM productivity, UBS-led flows, and successful scaling of HNI/adjacency businesses. Recurring Wealth and AMC revenues account for ~75% of operating revenue, while the CI ratio is targeted to decline toward 45-46%. Increasing contribution from lending, alternatives, broking, and advisory should further deepen wallet share.
* 360 ONE’s integrated UHNI platform, strong net flows, and 20-25% AUM growth ambition provide better earnings visibility than traditional capital-market businesses. We expect high-teens revenue growth and FY26-28 PAT CAGR of 20%, supported by wealth compounding and operating leverage.
* We adopt an SOTP approach, valuing ARR at 36x FY28 PAT and TBR/other income at 20x FY28 PAT to arrive at a fair value of INR1,300. Reiterate BUY.
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