Motilal Oswal has projected a target price of ₹1,300 for 360 ONE WAM, citing the significant growth potential in India's wealth management sector. The firm expects consistent profit growth through FY28, driven by an expanding base of ultra-high-net-worth clients, though investors should monitor market volatility and client acquisition progress.
Motilal Oswal has shared a positive outlook on 360 ONE WAM, setting a target price of ₹1,300 per share. The brokerage firm believes the company is well-positioned to benefit from the growing trend of wealthy families in India shifting their investments to professional wealth management platforms.
At the heart of this view is the gap between the total wealth held by affluent Indians and the portion that is currently managed professionally. While the number of individuals with wealth exceeding $30 million is expected to climb toward 25,000 by 2031, only about 15% of wealth in India is managed by professionals. This stands in contrast to mature markets where that figure is significantly higher, often around 75%. This gap indicates that companies like 360 ONE WAM have a long-term opportunity to capture more assets.
Motilal Oswal forecasts that 360 ONE WAM could see its revenue grow by 18% and profit after tax by 20% annually between FY26 and FY28. This growth is expected to be fueled by the company’s ability to win new clients and manage a larger share of the assets belonging to its existing 4,000-plus ultra-high-net-worth families. The valuation framework used by the brokerage highlights a strategy focused on two streams: annuity-based revenue, which is generally more stable and predictable, and transaction-linked income, which tends to fluctuate based on market activity.
While the growth prospects appear steady, investors should understand the nature of the wealth management business. The sector is heavily influenced by equity market performance. When markets are volatile, the value of assets under management can shift, and clients may become more cautious, which directly impacts the company's fee income. Additionally, 360 ONE WAM operates in a competitive environment, facing rivals that include large banks and global financial institutions, all of whom are vying for the same client base.
The ability of the company to maintain its growth trajectory depends on consistent client additions and the ability to capture a larger portion of each client's wallet. A shift toward more recurring income would likely improve the stability of earnings, but the company must balance this against the costs of acquiring new clients and ensuring product performance. Investors should track the company’s quarterly updates regarding asset growth and the mix of its revenue sources to gauge how well it is navigating these market and competitive challenges.