Not Rated 360 ONE WAM Ltd for the Target Rs.NA By Prabhudas Lilladher Ltd
Wealth-First Platform Moat, Operating Leverage Ahead
UHNI-Centric Model, HNI as a Funnel: 360ONE's wealth-first, capital-markets-led model and dedicated UHNI (INR 100cr+) platform positions it better than peers who lack a platform built specifically for UHNIs. Portfolio construction is governed by a toplevel asset allocation committee and a product approval committee, with skin-in-thegame by AMCs a key consideration. Product combinations are curated to client requisitions. The HNI vertical, launched ~18 months ago as a niche feeder into UHNI, contributes ~1% of revenue and is expected to peak at 4-5%. Management expects UHNI to drive majority of revenue, with HNI serving as the driver of new-money growth.
Operating leverage ahead as loss making segments breakeven:
Revenue mix between ARR/TBR is 75/25. Management targets 20-25% AUM growth over the medium term, comprising 12-15% net flows and 8-10% MTM, with blended yields of 73-75bps expected to stay range bound, translating to 20-25% ARR growth. TBR is expected to grow 10- 15% as it shifts toward more predictable broking income, leading to overall revenue growth in the high teens. C/I was 49.9% in FY26, of which ~3% was contributed by ET Money & HNI, and management expects a 50/100bps improvement in FY27/28 and an eventual floor of 45-46%. PAT CAGR expected at ~20%. ET Money and HNI together reported a loss of INR 1bn in FY26, with both expected to breakeven latest by Q2FY28. The company also expects warrant conversion of INR 1,800 crore by UBS and the Murarka family by Nov'26 at INR 1,175 per share.
BNK Integration to build a more predictable transaction revenue Mix:
The BNK integration brought institutional equities and corporate treasury solutions businesses that fit naturally with the UHNI franchise. The equities business added ~300 corporate clients and a strong research platform covering 500+ stocks, well known for its mid and small cap research. The company aims to make transactional revenue (~25% of overall revenue) more predictable by replacing lumpy debt syndication and block-trading income with institutional broking income. BNK's research and execution would be offered to UHNI clients and doubling UHNI broking over the next couple of years
Limited competition, sticky clients, and contained RM attrition:
Kotak is the only relevant competitor with a comparable UHNI clientele. RM attrition at ~6-8% with minimal impact on AuM (~1.5%) and revenue, since UHNIs tend to stay with the firm which discourages RMs from exit, though incremental flows may be affected. The exit of two teams between FY25-26 led 8-10% of AuM to move out, but with no client loss. Management plans to lift client-per-RM productivity from ~32 to 36 through tech developments. HNI RMs are expected to rise from 60 to 90, after which further expansion will be measured. RMs take ~18 months (HNI) and ~20-25 months (UHNI) to break even, i.e. to generate recurring revenue of 3x their compensation.
Group CEO to stitch gap between business verticals:
Company operates through four business CEOs across its listed AMC, alternates, wealth and capital markets segments. Management expects new Group CEO Aashish Agarwal, joining in Feb'27, to bridge the gaps between these verticals. He has strong relationships with India's top ~150 families, built through IPOs, liquidity events and monetisation transactions. His overlap with 360ONE's top 50 client families is limited, so he should open doors to new families.
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SEBI Registration number is INH000000933
