Global brokerage UBS has increased its price target for wealth management firm 360 One WAM to ₹1,240. The outlook is supported by expectations of strong earnings growth, with profits projected to reach nearly ₹1,700 crore by FY28. Investors are tracking the company's aggressive expansion goals and recurring revenue trends in the wealth management sector.
Detailed Coverage
UBS has maintained its 'Add' rating on 360 One WAM and revised its price target upward to ₹1,240, citing a favorable growth outlook for the wealth management firm. The brokerage expects the company’s profit after tax to climb toward ₹1,700 crore by the end of the 2028 fiscal year. This optimistic view is built on consistent gains in annual recurring revenue assets under management, as well as steady transaction-based brokerage revenue that showed positive momentum through the end of the 2026 fiscal year and into the first quarter of fiscal 2027.
Scaling Market Share and Client Base
360 One WAM is actively pursuing a strategy to increase its footprint among India's ultra-high-net-worth households. The company aims to roughly double its presence among families holding assets exceeding ₹10,000 crore, targeting a client base expansion from approximately 4,000 to between 8,000 and 10,000 families over the coming three to five years. While this growth strategy is ambitious, potential risks include volatility in investment valuations due to market fluctuations and increasing competition from both traditional banks and other private wealth management players entering the space.
Financial Projections and Operating Efficiency
The brokerage anticipates a compound annual growth rate of 27.5% for the company's recurring revenue assets under management between fiscal years 2026 and 2028. This forecast relies on sustained net inflows, with estimates suggesting new additions of roughly ₹43,700 crore in FY27 and ₹56,300 crore in FY28. Furthermore, the company’s ability to manage its cost-to-income ratio is a key area for profitability. Projections suggest this ratio may improve to approximately 50% in FY27 and 48.4% in FY28, which could provide a boost to net margins.
Valuation estimates from the brokerage are based on a multiple of 32 times the projected earnings per share of ₹38.7 for fiscal year 2028. These figures take into account planned stake acquisitions and the issuance of warrants to the promoters of B&K, an entity acquired by 360 One WAM. Investors looking ahead may focus on the actual execution of these inflows, the success of the integration with B&K, and the company's ability to maintain its profit margins while competing in a fast-evolving financial landscape.