UBS has initiated coverage on 360 One WAM (formerly known as IIFL Wealth) with a ‘Buy’ rating, highlighting the company’s potential for strong growth in the wealth management space. 360 One WAM holds a dominant position in India’s high-net-worth individual (HNWI) and ultra-high-net-worth individual (UHNWI) wealth management market, with a market share of 8-10%.
The wealth segment is expected to grow, driven by advisory services, followed by distribution and lending activities. UBS estimates that the company’s wealth recurring assets under management (AUM) could see a compound annual growth rate (CAGR) of 23% over the next three years (FY24-27). In comparison, the overall AUM is expected to grow at 16%, while the asset management AUM could achieve a 20% CAGR.
Annual recurring revenue (ARR) is projected to increase at a CAGR of 21%, with transaction-based revenue expected to remain stable at Rs 5-5.5 billion. UBS sees strong potential for growth in mutual funds, portfolio management services (PMS), and alternative investment funds (AIF), which are increasingly favored by high-net-worth investors in India.
UBS has set a price target of ₹1,250 for 360 One WAM, based on a dividend discount model (DDM). This implies a 42x price-to-earnings ratio by December 2025, signaling potential for further stock re-rating despite recent gains.
