360 ONE WAM: PAT up 48% & Revenue up 34% in Q1-25 at a PE of 46
360 ONE WAM: PAT up 48% & Revenue up 34% in Q1-25 at a PE of 46
360ONE as one of India’s largest wealth manager clients would be a big beneficiary of the macro tailwinds driving wealth management. AUM growth of 15%
1. Why is 360ONE interesting
iiflwealth.com | NSE: 360ONE
India's Wealth & Asset Management sector is poised for structural growth in the coming years. This growth will be driven by robust GDP growth, capital market expansion, faster wealth creation outside traditional pockets, and overall low penetration in the sector. 360ONE as one of India’s largest wealth manager servicing 7,400+ clients would be a big beneficiary of this upcoming growth. 2. Wealth and alternates-focused asset firm
One of India’s largest wealth manager servicing 7,400+ clients
3. FY20-24: PAT CAGR of 40% & Revenue CAGR of 19%
4. Strong FY24: Revenue up 20% & Revenue up 18%
5. Strong Q1-25: PAT up 34% & Revenue up 48% YoY
6. Business metrics: Strong & improving return ratios
We expect this ROE to sustain while we continue to invest in future growth areas.
7. Strong outlook: Macro tailwinds to drive 15% AUM growth
i. AUM growth of 15%
Well, from an AUM based perspective right now, obviously in our guidance, we've not fully factored in our mid market and global businesses.
In a steady state basis, assuming tougher capital markets for some time during the next 3-4 years, if I take an average over a 3 4, 5 year time period, a net flow growth of round about 15% to 20% is broadly where I would feel very, very comfortable with
But a 15% growth in AUM due to net flows would be great.
ii. Macro tailwinds supporting growth
We are optimistic about the substantial wealth opportunity beyond Tier-1 cities and have an expansion plan for our domestic coverage.
We expect to leverage the strength of our core platform and innovative competences to fuel high growth in the HNI segment as well as become a favoured manager of global capital looking to access India.
The unique blend of macro tailwinds and our distinctive proposition continues to consolidate our position as one of the leading players in India
At 360 ONE, our focus on consolidation has laid a strong base for future growth and strengthened our position as one of the leading players in India.
8. PAT growth of 34% & Revenue growth of 48% in Q1-25 at a PE of 46
9. Do I stay?
If I hold the stock then one may continue holding on to 360ONE
360ONE has delivered a strong Q1-25 with robust revenue growth, impressive profit margins, and a high tangible RoE
the Company recorded its highest ever quarterly profit in Q1
360ONE is in the middle of a strong run it has grown its top-line, bottom-line and AUM QoQ on a sequential basis. This performance is driven by a strong underlying business performance. One can easily keep riding ride the trend of strong quarterly performances.
In FY24, 360 ONE Wealth successfully onboarded 400+ clients (with more than Rs 10 Crs ARR AUM).
In Q1 FY25, 360 ONE Wealth successfully onboarded 150+ clients (with more than Rs 10 Crs ARR AUM).
The revenue visibility of 360ONE is strong. 63% of Q1-25 revenue was Annual Recurring Revenue (ARR)
Our ARR Revenues, as a % of total revenues from operations, stood at 63%. As mentioned in our previous calls, we continue to focus on increasing the share of ARR revenue in the overall pie.
10. Do I enter?
If I am looking to enter 360ONE then
360ONE has delivered PAT growth of 34% and revenue growth of 48% in Q1-25 at a PE of 46 which makes the valuations fully valued in the short term.
With an outlook of AUM growing by 15% over the longer term and the marco tailwinds supporting the growth in wealth management the opportunity in 360ONE will emerge over the longer term.
There is long term opportunity in 360ONE only if the momentum of the last 5 years continues into FY26 and beyond. On the flip side the margin for error is small. One bad quarter and the asking rate to sustain a PE of 46 will become quite high. At a PE of 46, the stock can become expensive quite quickly if execution falters by a little. Positions need to be built over time over bad days or periods when the stock is not doing well.
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