Apr'25 View on 360 ONE WAM Ltd

IIFL Wealth Management Limited, founded in 2008, is one of the largest private wealth management firms in India. The company mainly acts as wealth manager and provides services relating to financial products distribution, advisory, portfolio management services by mobilizing funds and assets of various classes of investors including High Networth Individuals. Rationale: • 360 One’s 3Q results beat expectations, with ~40% yoy earnings growth. • The company has also announced the acquisition of B&K Securities for ~Rs2200 crores (including earnouts) to augment its capital market offerings. • B&K adds another vertical, its fit into co. core proposition needs more clarity. • For now, relatively expensive valuations drive our REDUCE rating with Rs1,150 FV. Q3FY25 Earnings Update: Positives: • Co. reported ~30% yoy recurring revenue growth and ~50% yoy growth in transactional (including carry) income. • Other income increased over 2X. • Recurring AUMs have grown at a fast clip. • Stronger growth in clients with AUM > Rs10 crores. Negatives: • The AMC was impacted by redemptions from older funds. • Expense growth of ~40% yoy was higher than expected. • Flows into recurring AUMs declined marginally qoq.