At a Glance:
360 ONE WAM Ltd (formerly IIFL Wealth) has delivered a stunning 10x PAT growth in 7 years, a 40% profit CAGR, and manages over ₹4.5 lakh crore in assets. But with promoter holding down to 7% (and 87% of it pledged), a ₹45,000 Cr valuation, and a 41x P/E, are we paying up for “brand aura” or for actual alpha?
1. 🏦 What Does 360 ONE Actually Do?
- India’s largest pure-play wealth manager — serving HNIs, UHNIs, and “I-don’t-check-prices-at-restaurants” class
- Core verticals:
- Discretionary Portfolio Management (like MF for the rich)
- Non-Discretionary Advisory
- Lending against securities
- Estate & Succession Planning
- Client base: 7,200+ across India and NRIs; AUM base of over ₹4.5 lakh crore
- Revenue model: Fees, commissions, lending income — basically, they make money off your money
2. 👨💼 Who’s Running the Show?
- Karan Bhagat – Founder & MD (recently reappointed)
- Old IIFL DNA, new brand — listed separately post demerger
- Backed heavily by FIIs: GIC, Bain Capital, General Atlantic have been major cheerleaders
- Recent acquisition: B&K Securities (₹1175 Cr deal via share allotment)
3. 💰 5-Year Financial Highlights
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|
| FY21 | 1,654 | 369 | 57% | 10.50 |
| FY22 | 2,072 | 578 | 56% | 16.28 |
| FY23 | 2,057 | 658 | 63% | 18.48 |
| FY24 | 2,921 | 804 | 58% | 22.41 |
| FY25 | 3,295 | 1,015 | 61% | 25.83 |
- Sales CAGR (5Y): 16.1%
- PAT CAGR (5Y): 24.7%
- EPS almost tripled in 5 years
- OPM consistently >55% — rare in Indian BFSI sector
4. 🧠 ROE + ROCE = Wealthy Metrics
| Metric | FY25 |
|---|---|
| ROE | 20.6% |
| ROCE | 14.9% |
| Dividend Yield | 0.53% |
| P/E Ratio | 41.6x |
| P/B Ratio | 6.3x |
- Asset-light + cash-generating = High return ratios
- P/E >40x is rich, but so is the clientele
5. 🔮 Valuation Check — Fully Priced or Priced for Perfection?
Assumptions:
- FY26E PAT = ₹1,250 Cr
- Fair P/E band = 25x–35x (in line with high-quality NBFCs, asset-light wealth managers)
Fair Value Market Cap = ₹31,250 Cr to ₹43,750 Cr
Shares Outstanding = ~39 Cr
🎯 Fair Value per Share = ₹800 – ₹1,120
⚠️ CMP = ₹1,140 → Trading above upper band, so future returns depend on profit beat or further FII love
6. 🧾 Quarterly Trend — EPS on Steroids?
| Quarter | EPS (₹) | Net Profit (₹ Cr) |
|---|---|---|
| Mar-23 | 4.37 | 155 |
| Jun-23 | 5.15 | 184 |
| Sep-23 | 5.21 | 186 |
| Dec-23 | 5.36 | 192 |
| Mar-24 | 6.76 | 243 |
| Jun-24 | 6.72 | 244 |
| Sep-24 | 6.73 | 245 |
| Dec-24 | 7.12 | 276 |
| Mar-25 | 6.35 | 250 |
- Steady compounding
- No big seasonal drops = sticky revenue
7. 💣 Promoter Drama: 7% Holding, 87% Pledged?
| Category | May 2025 |
|---|---|
| Promoter | 7.08% |
| FIIs | 66.78% |
| DIIs | 7.59% |
| Public | 18.53% |
- Promoter stake down from 23% in 2022 to 7% now
- And 87% of that 7% is pledged 🤯
- That’s a trust issue for long-term retail investors
8. 🧨 Risks: It’s a Rich Man’s Game
- Dependent on HNI asset flows — one bad budget/tax rule and inflows can dip
- Heavily FII owned = volatility magnet
- Non-linear revenue — wealth businesses don’t grow in a straight line
9. 💼 Business Moat: Relationship + Scale
- Few competitors with ₹4.5 lakh Cr AUM — Angel One, Motilal Oswal, Nuvama still catching up
- Strong relationships with ultra-rich
- Lending + estate planning = sticky wallet share
- Technology + advisory scale working in its favor
10. 🏦 Balance Sheet Muscles
| Metric | FY25 |
|---|---|
| Net Worth | ₹7,065 Cr |
| Debt | ₹11,160 Cr |
| Fixed Assets | ₹1,370 Cr |
| Investments | ₹7,608 Cr |
| Cash Conversion Cycle | 49 days |
- Borrowings have grown, but offset by high investment book
- Cash flow from operations under pressure: -₹2,411 Cr in FY25
- Still managing interest burden due to high OPM
11. 📉 Cash Flow — That’s a Leak, Sir
| Year | Operating CF (₹ Cr) | Investing CF | FCF |
|---|---|---|---|
| FY23 | -1,323 | ₹788 Cr | Negative |
| FY24 | -470 | -₹1,574 Cr | Deep Red |
| FY25 | -2,411 | -₹1,068 Cr | Titanic 🚢 |
- Cash flow management is the weak link
- Heavy capex and working capital = high cash burn
12. 🧠 EduInvesting Verdict (No Buy/Sell)
- 360 ONE is classy, compoundy, and clearly executing.
- But it’s no longer cheap — and certainly not under the radar anymore.
- Watch the promoter pledges, cash flow stress, and FII exposure.
- For now, the stock price reflects everything good… and very little risk.
💡 It’s the Ferrari of wealth stocks — just make sure the engine doesn’t overheat.
Tags: 360 ONE WAM, IIFL Wealth, HNI Investing India, Wealth Management Stocks, Promoter Pledge Risk, EduInvesting, Financial Services Recap
✍️ Written by Prashant | 📅 14 June 2025
