Jefferies has reiterated a ‘Buy’ rating on 360 One (formerly known as IIFL Wealth), with a target price of ₹1350, suggesting a 22% upside from the current market price of ₹1,105. The brokerage cited a strong Q2 FY25 performance, with Profit Before Tax (PBT) surging 41% YoY, driven by robust growth in the wealth management business.
The wealth segment posted an impressive 44% YoY growth, aided by net inflows of ₹84 billion, which represented a 2.6x increase YoY. This significantly boosted Annual Recurring Revenue (ARR) growth by 31% YoY. Additionally, Transaction-Based Revenue (TBR) saw another quarter of elevated performance, with a 65% YoY increase.
In the asset management segment, the company reported gross inflows of ₹71 billion, which continues to counterbalance the impact of an ongoing redemption cycle expected to conclude by Q4 FY25. Based on these strong flows, Jefferies raised its EPS estimates by 2-3%.
Jefferies remains optimistic about 360 One’s ability to deliver solid growth, driven by both wealth and asset management businesses, and believes the stock offers significant upside potential.
Disclaimer: The information in this article is based on analyses by Jefferies and does not constitute investment advice. Investors should consult their own financial advisors before making any decisions. The author and the publication bear no responsibility for any losses incurred from actions taken based on this information.
