MOTILAL OSWAL RECOMMENDS 360 ONE WAM, TARGETS PRICE OF RS 1300

Motilal Oswal Maintains 'BUY' on 360 ONE WAM, Sets Fair Value at INR1,300

360 One WAM (360ONE) has reported a strong operating performance in the fourth quarter of fiscal year 26 (4QFY26), with operating revenue reaching INR8.3 billion, in line with expectations. The company's operating revenue growth was driven by a 20% year-over-year (YoY) increase in recurring revenue and a 54% YoY surge in transactional revenue, resulting in a 28% YoY growth in overall operating revenue.

For the full fiscal year 26 (FY26), 360ONE's operating revenue grew by 25% YoY, while its costs remained under control, with the cost-to-income ratio declining by 120 basis points (bp) YoY to 50.1%. This reduction in costs enabled the company to report an operating profit of INR4.2 billion, which grew by 31% YoY. For FY26, 360ONE's operating profit came in at INR15 billion, up 22% YoY.

Valuation and Recommendation

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Motilal Oswal Financial Services (MOFS) has adopted a Sum-of-the-Parts (SoTP) approach to value 360ONE, assigning a price-to-earnings ratio (PAT) of 36x to Annual Recurring Revenue (ARR) and 20x PAT to Transaction-Based Revenue (TBR)/other income. Based on this valuation, the fair value of 360ONE is estimated to be INR1,300. Therefore, Motilal Oswal maintains its 'BUY' recommendation for the company.