Goal: ₹1,250
CMP: ₹1,039.50
We attended an analyst name hosted by the administration crew of 360 One WAM. The administration outlined the strategic rationale behind the B&Ok acquisition and new strategic initiatives. The next are the important thing takeaways from the meet:
B&Ok acquisition is a strategic match for 360 ONE as it should improve its enterprise in a number of methods — it should present fairness advisory to current purchasers; company advisory of B&Ok will profit from the product portfolio of 360 ONE; and the company relationships of 360 ONE will assist scale up the IB enterprise. The deal is prone to be EPS-accretive by 3-5 per cent.
The corporate expects a income CAGR of 15-25 per cent in B&Ok enterprise over the following three-five years, pushed by incremental enterprise from current clients and new buyer additions, with its inherent want for a powerful fairness advisory franchise.
With the current market corrections, the corporate expects to achieve market share given its sturdy product portfolio and clients sitting on 10-20 per cent money for deployment in fairness markets. The present flows are extra towards non-equity belongings, although a change within the current AUM combine towards debt appears to be a restricted risk.
360 ONE maintains a powerful place within the trade, mirrored by strong flows and constant efficiency. Diversification throughout shopper segments (mass prosperous) and geography (lower-tier cities) is gaining traction, and its world platform has additionally seen inexperienced shoots.
We now have reduce our estimates by 2 per cent/4 per cent for FY26/FY27 to issue within the MTM hit together with decrease assumptions on progress in inflows. We now have not but inbuilt revenues/prices/dilution for the B&Ok acquisition. We retain our Purchase ranking with a one-year TP of ₹1,250, premised on 34x FY27E EPS.
