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Beyond the rally: Is 360 ONE WAM just getting started?
Beyond the rally: Is 360 ONE WAM just getting started?

Indian Express

time05-08-2025

  • Business
  • Indian Express

Beyond the rally: Is 360 ONE WAM just getting started?

Five years ago, 360 ONE WAM was just another niche wealth manager, its stock trading near Rs 200. Today, it is India's largest homegrown private wealth and alternatives platform, managing a staggering Rs 6.6 lakh crore for over 8,000 families and corporates. The stock has surged more than 6x in that time, recently touching Rs 1,200 before cooling off. In the last quarter alone, the company attracted Rs 20,950 crore in Annual Recurring Revenue (ARR) net flows. This is fresh client money that goes into long-term, fee-earning products such as portfolio management, advisory mandates, and alternatives. Unlike one-off transactions, these flows generate predictable revenue year after year. It also posted its highest-ever profit of Rs 287 crore, with 77% of revenue now coming from these stable, recurring sources. Alongside, it sealed an exclusive partnership with UBS, integrated B&K Securities, and sharply reduced losses at its digital arm ET Money. For investors, the big question is: after such a meteoric rise in both business scale and share price, is this still an early innings compounding story, or is the market already pricing in the next chapter? Business dynamics: How 360 ONE WAM makes its money Think of 360 ONE WAM as running three interconnected businesses under one roof: Wealth Management, Asset Management, and Transaction & Lending Services. Each one feeds the other, making the overall model stronger and stickier. 1. Wealth Management: The core engine This is the biggest piece, managing Rs 5.71 lakh crore, or about 86% of total AUM. The clients here are mostly ultra high net worth families and corporates — 4,200+ of them having portfolios above Rs 10 crore each, accounting for 95% of wealth AUM. The goal is simple: win the trust of these clients, manage more of their wealth each year, and keep them for the long haul. And they have done just that, with 82% of AUM coming from relationships older than 5 years. In Q1 FY26: Essentially, think of ARR in wealth like a salary; you get it every month, without having to 'find' new income. As long as clients keep their money parked here, fees keep coming for the company. 2. Asset Management: The scalable growth play This segment runs in-house funds and portfolio management strategies across equities, alternatives, and multi-asset portfolios. Total AUM here is Rs 92,544 crore (14% of the group total), up 16% YoY. The sweet spot is alternatives that are private equity, private credit, and other high yield strategies, which bring in 85-90 bps in fees (including performance-linked carry). Listed portfolios and mutual fund products bring in slightly lower yields (60-62 bps), but they add scale and credibility. In Q1 FY26: For investors, this is like owning a portfolio of rental properties with some premium assets bringing high rents (alternates), while others offer steady but slightly lower yields (listed equities). 3. Transaction & Lending Services: The complementary layer This is where B&K Securities and the NBFC lending arm come in. B&K Securities: Institutional broking, investment banking, and corporate treasury services. Brought in ~Rs 18,200 crore in AUM via corporate mutual fund distribution in just one quarter post acquisition. Lending: Loans against securities for HNIs and corporates. Yield range: 350-400 bps. Goal: Keep transaction income steady at ~20% of total revenues, growing from the current Rs 550-600 crore annual run rate to Rs 1,000 crore in 2-3 years. Lending deepens client relationships, while broking services bring more touchpoints with corporate and UHNI clients. Why this model works 1. Recurring first, cyclical second The backbone of 360 ONE WAM is recurring revenue. In Q1 FY26, 77% of total operating revenue came from ARR fees, that is predictable money earned from managing client portfolios, regardless of how many trades or deals happen that month. This acts like a monthly salary for the company. You know it is coming, and it covers your core expenses. The other 23% comes from transactional income like investment banking fees, brokerage, or one-time structuring. This is more like an annual bonus – great when it comes, but not something to depend on every month. By keeping this balance, the business stays steady even if capital markets slow down. 2. Deep, sticky client relationships Managing wealth for ultra-rich families is not about running ads, it's about relationships and trust. Over 82% of AUM comes from clients who have been with 360 ONE for more than five years. For a wealth manager, that is the equivalent of a shopkeeper having customers who not only buy from you every month but also bring their friends and family along. This loyalty matters because wealthy clients tend to consolidate assets with managers they trust, which means a bigger wallet share without huge marketing spends. 3. Talent as a moat In wealth management, your relationship managers are your product. 360 ONE has retained over 90% of its senior sales force, a big reason for its consistent net inflows. 4. Multiple engines of growth Wealth management is the core, but asset management and lending provide new ways to grow revenue without reinventing the wheel. An existing UHNI client can be offered a lending facility. That same client can be introduced to in-house alternate funds. The corporate treasury they control can use B&K's institutional broking desk. One client, multiple touchpoints, making the relationship harder for competitors to break. Strategic moves and growth catalysts 360 ONE WAM is not just adding clients, but it is building platforms and partnerships that can multiply growth over the next few years. 1. UBS tie up: Global gateway for Indian wealth In Q1 FY26, 360 ONE secured an exclusive collaboration with UBS, one of the world's largest wealth managers. This opens doors for both sides: 2. B&K Securities: Institutional muscle The acquisition of B&K Securities was completed in May 2025. In just one month of inclusion, it added ~Rs 18,200 crore to ARR AUM, primarily from corporate mutual fund distribution and treasury mandates. B&K brings: 3. ET Money: Digital mass affluent funnel Acquired in late 2024, ET Money is 360 ONE's play for the mass affluent and tech-savvy investor base. Before acquisition, ET Money was losing Rs 15 crore per quarter. Within 2 to 3 quarters, 360 ONE cut losses to Rs 6-7 crore per quarter (~Rs 25 crore annualised). Its strengths: The plan: In other words, ET Money is the wide funnel that feeds the high-margin private wealth business. Financial strength meets high market expectations 360 ONE WAM's latest numbers show a business that is scaling fast while keeping a tight grip on discipline. In Q1 FY26, revenue touched Rs 725 crore, with the most encouraging part being the Rs 511 crore earned from ARR fees. This is the predictable, salary-like income the firm earns from long-term wealth and asset management mandates. It now makes up 77% of operating revenue, meaning most of the company's top line is steady rather than one-off. Profits matched the revenue quality. The firm posted its highest-ever quarterly profit of Rs 287 crore, up 18% year on year, with a tangible return on equity of 19.6%. Even more telling, it improved its cost-to-income ratio to 48.4% from 50.7% last quarter, despite absorbing the full quarter cost of ET Money and part quarter cost of B&K Securities. That is like taking on new monthly expenses but still saving more than before, a clear sign that operating leverage is kicking in. Money is flowing in strongly, too. ARR assets under management stand at Rs 2.87 lakh crore, up 30% in a year. Fresh inflows in Q1 were Rs 20,950 crore, largely from the B&K acquisition but also backed by healthy organic flows. Management's target is to bring in new client assets equal to 12-15% of starting AUM every year, which for FY26 means Rs 27,000-35,000 crore in fresh money. The only hitch for potential investors is the price tag. At around Rs 40,000 crore market value and roughly 40 times forward earnings, the stock is not cheap. The market is paying up for leadership in the ultra-rich wealth segment, sticky clients, and multiple growth engines that are wealth management, asset management, lending, transactions, and digital. But this also means expectations are high. If flows slow, margins slip, or integration takes longer than planned, the share price could react quickly. On the other hand, if the company keeps delivering as it has, the premium may be justified. Three Competitive and Structural Risks to Watch In short, the fundamentals are solid, the growth story is intact, and the business model is built for compounding. But for new investors, it is like buying into a champion cricket team after it has already won several trophies, as you need to be confident they can keep winning before paying top dollar for a seat in the stands. For long-term holders, this could remain a wealth compounding machine for years, provided management keeps executing with the same discipline that has brought it this far and navigates the talent, regulatory, and competitive challenges that will inevitably test it. Note: This article relies on data from annual and industry reports. We have used our assumptions for forecasting. Parth Parikh has over a decade of experience in finance and research and currently heads the growth and content vertical at Finsire. He holds an FRM Charter and an MBA in Finance from Narsee Monjee Institute of Management Studies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.

Landmark Cars stock jumps 6% as B&K Sec initiates coverage, 60% upside seen
Landmark Cars stock jumps 6% as B&K Sec initiates coverage, 60% upside seen

Business Standard

time14-07-2025

  • Automotive
  • Business Standard

Landmark Cars stock jumps 6% as B&K Sec initiates coverage, 60% upside seen

Landmark Cars share price: Shares of premium automotive retailer Landmark Cars were in focus on Monday, July 14, 2025, rising as much as 6 per cent to hit an intraday high of ₹539.65 after domestic brokerage B&K Securities initiated coverage on the stock with a bullish outlook, driven by strong growth potential and improving profitability over the next two years. The brokerage initiated coverage on Landmark Cars with a 'Buy' rating and a target price of ₹820 per share, implying a 60 per cent upside from Friday's closing levels. At 3 PM, the stock was trading at ₹531, up 4.5 per cent from its previous day's close of ₹507.85. In comparison, the benchmark NSE Nifty50 was trading lower by 73.55 points or 0.3 per cent at 25,080.3 levels. According to analysts at B& Securities, while Landmark Cars' proforma and reported revenues grew at a compound annual growth rate (CAGR) of 11 per cent and 9 per cent, respectively, from FY23 to FY25, the company's Ebitda, PBT, and PAT declined by 3 per cent, 20 per cent, and 55 per cent, respectively. However, the company's sales growth of 11 per cent was double the Indian passenger vehicle sales CAGR of 5 per cent over FY23 to FY25. During FY25, the older outlets and workshops contributed ₹70 crore to PBT, and the newly opened ones incurred PBT-level losses of ₹40 crore. As these facilities ramp up, they are expected to break even starting Q1FY26, with most turning profitable by the end of FY26, the brokerage said. The company has also tied up with three new brands - Mahindra & Mahindra (M&M), Kia and MG Motors - over the past two years. Landmark Cars is the first multi-brand, multi-location auto dealer operating in the premium and luxury car segment in India with 70 showrooms and 61 workshops as of FY25. "While the after-sales mix for old brands is 17 per cent for the new brands, it is 9 per cent. As the after-sales mix improves for these new brands and new outlets scale up, we expect the margin of the company to improve from 5.5 per cent to 7.5 per cent over FY25-27E," B&K Securities said. Analysts at B&K Securities believe that Landmark Cars remains a highly moated business with pan-India reach, high switching costs for OEMs, and market leadership with many OEMs, including Mercedes Benz, BYD, Jeep, Volkswagen, Honda and MG Motors. While the high capital requirements prevent smaller players from entering this segment, the intricate nature of the business is driving consolidation in the industry.

Top stocks to buy or sell today: Stock recommendations for July 8, 2025 - here's what brokerages are saying
Top stocks to buy or sell today: Stock recommendations for July 8, 2025 - here's what brokerages are saying

Time of India

time08-07-2025

  • Business
  • Time of India

Top stocks to buy or sell today: Stock recommendations for July 8, 2025 - here's what brokerages are saying

B&K Securities initiated its coverage of Dixon Technologies with a buy rating and a target price of Rs 18,946. Analysts feel Dixon Tech stands at the forefront of India's electronics manufacturing transformation and it is uniquely positioned to benefit from the accelerating shift towards domestic and global electronics outsourcing. Continued scale-up in mobile and IT hardware, entry into industrial EMS and EV, wallet share gains, backward integration, export growth, and rising ODM share to drive 42% revenue and 69% PAT growth on a compounded basis over FY25 to FY27. High growth, large total addressable market, policy tailwinds, and high return ratios should sustain valuations, they said. Jefferies has a buy rating on IndusInd Bank with a target price of Rs 920. Analysts said during the April-June quarter, loans decreased 4% on an annualised basis and 3% on a quarterly basis as there was a 14% decline in corporate banking business and a 5% dip in consumer business. Deposits were down 3% on the quarter while retail deposits were flat, reflecting limited outflows, which the market may appreciate, they said. Additionally, a rating agency has removed its ratings watch with a negative outlook from the lender. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Morgan Stanley maintained its overweight rating on Eternal with a target price of Rs 320. Analysts said Eternal has appointed a new CEO for the food ordering and delivery business. Leadership changes at the senior management level could have a mixed effect on sentiment. However, they noted that Zomato continued to gain market share despite multiple changes over the last four years. Motilal Oswal Financial Services upgraded its ratings on Petronet LNG to buy from neutral with the target price hiked to Rs 410 from Rs 315 earlier. Analysts said the company's capacity expansion can drive a re-rating and the upsides from soft LNG prices in FY27. Also, competition-related narratives are floundering. They believe valuations imply the stock is at a point of maximum pessimism. CLSA has an underperform rating on Jubilant Foodworks with the target price at Rs 519. Analysts said the company's April-June quarter standalone sales of Rs 1,702 crore, up 18.2% on the year, was above estimates. Domino's India like for like growth of 11.6% was in-line. The company's consolidated net sales growth was 17.0% on the year, slightly below estimate and dragged down by 2.2% drop for Domino's Turkey business. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Investing in these 3 chemical sector stocks can give good returns now as sector is reviving
Investing in these 3 chemical sector stocks can give good returns now as sector is reviving

Time of India

time02-06-2025

  • Business
  • Time of India

Investing in these 3 chemical sector stocks can give good returns now as sector is reviving

After a lull of about three years, India's chemicals sector now appears poised for an upgrade. If you are looking for a contrarian investment strategy , then you might want to take a small exposure to this sector. Here's why. On a rebound The sector saw a marginal but noticeable improvement in performance during the January–March 2025 quarter. While much of the gain can be attributed to the low base effect, analysts remain optimistic. Of the 32 companies tracked by Reuters-Refinitiv (with estimates from at least two analysts), 19—or 59.3%—beat net profit expectations for the quarter. Anuj Jain, Co-founder of Green Portfolio PMS, says the March quarter results signal the beginning of an upcycle in the chemicals industry after a pause of nearly 2–3 years. Though valuations remain high for several large-cap stocks in the sector, many mid- and small-cap companies are still available at attractive valuations. A bleak past The chemicals sector has faced persistent headwinds over the past few quarters due to muted demand, weak realisations amid pricing pressures, inventory destocking in the agrochemicals segment, and heightened competition from China. Data compiled from the Reuters-Refinitiv database for 139 chemical companies with a market cap of more than Rs.100 crore shows dismal aggregate revenue growth of just 2% and 3.4% in the June and September quarters of 2024-25, on a year-on-year basis. Nearly 54% of these companies underperformed the Nifty 500 index over the last year, while 66% lagged the broader market benchmark in 2025 year-to-date. Live Events Brokers upbeat, but wary A pick-up in domestic demand for RACs (room air conditioners) and the sheer rise in demand for gas used in refrigeration and air conditioning is expected to bode well for the sector. While a B&K Securities report highlights that the weakening of competition from within the European Union will open up export opportunities for Indian companies, it also cautions against the continued threat of strong competition from China. On the other hand, a gradual recovery is expected in the agrochemicals segment, supported by the rising demand for newer, innovative products and biological alternatives. A Motilal Oswal report released in March 2025 notes that prices in the global crop protection industry are likely to bottom out in 2025 across all key regions and product segments, paving the way for a more stable growth trajectory ahead. The B&K Securities report notes that a sustained recovery in demand from the EU27 block is crucial to boosting the export growth potential of the Indian chemicals industry. It adds that with inventory de-stocking now largely complete in European markets, both demand and volumes are expected to drive growth going forward. Challenges The US trade tariffs, low-cost dumping by Chinese manufacturers, and weak demand in Europe remain some of the major concerns for the sector. An April 2025 Kotak Securities report expresses hope for a decent recovery over 2024–25 and 2026–27. However, in the event of a prolonged tariff war, it cautions that there could be more substantial downside risk to these expectations. Here are three companies worth considering for a small exposure. These firms have reported double-digit growth in net earnings for the March 2025 quarter and enjoy the highest level of analyst coverage within the sector. SRF Q4 revenue and net profit beat estimates by 7.4% and 9.3%. Strong performance in specialty chemicals, refrigerant gases, and packaging films. 2025-26 revenue guidance at 20% growth. Elara Capital maintains an 'accumulate' rating, expecting gains from recovering demand. Navin Fluorine Q4 revenue and EBITDA beat estimates by 2.4% and 7.9%. CDMO (Contract Development and Manufacturing Organisation) and high-performance products drove growth. Refrigerant gas demand and better pricing supported performance. Management targets ~25% EBITDA margin in 2025-26. Prabhudas Lilladher sees strong long-term growth potential. UPL Q4 revenue and EBITDA beat estimates by 3.6% and 9.9%. Growth is driven by strong volumes, and inventory normalisation. 2025-26 revenue growth guided at 4-8%, led by volumes. Recovery in key markets and new products to aid growth. Antique sees balance sheet improving and growth momentum continuing.

Mid-Cap Specialty chemical stock Clean Science risen 8% post Q4 results, Dividend announcement. Buy or Sell?
Mid-Cap Specialty chemical stock Clean Science risen 8% post Q4 results, Dividend announcement. Buy or Sell?

Mint

time23-05-2025

  • Business
  • Mint

Mid-Cap Specialty chemical stock Clean Science risen 8% post Q4 results, Dividend announcement. Buy or Sell?

Stock Market Today: Mid-Cap Specialty chemical stock Clean Science gained more than 8% during the intraday trades on Friday post Q4 results and Dividend announcement on Thursday after the market hours. Should you Buy or Sell the Clean Science and Technology stock? The quarterly consolidated net profit reported by Mid-Cap Specialty chemical stock Clean Science and Technology increased by 5.89% from Rs. 70.09 crore in January - March 2024 quarter to Rs. 74.23 crore in January - March 2025 quarter. The reported net sales for the March 2025quarter for Clean Science and Technology Ltd stood at ₹ 263.68 crore, up 15.89% from March 2024's ₹ 227.53 crore. The Earnings before Interest Tax Depreciation and Amrotisation increased 7.91% from Rs. 108.57 crore in March 2024 to Rs. 117.16 crore in March 2025. Motilal Oswal Financial Services Ltd - For Mid-Cap Specialty chemical stock Clean Science and Technology Motilal Oswal Financial Services or MOFSL expects a revenue, Ebitda /EBITDA and net profit compounded annual growth of CAGR of 26%, 24% and 30% during FY25-27 respectively. The company is expected to generate around ₹ 190 Crore in Free Cash Flow during FY26-27, with a planned capex of ₹ 600 crore over the same period. The stock is currently trading at 32 times FY27 estimated Earnings per share or EPS of ₹ 42 and 23 times FY27 estimated EV/EBITDA. MOFSL value the stock at 30 times FY27 estimated EPS to arrive at their target price of ₹ 1,260 and hence have Neutral Ratings for the Mid-Cap Specialty chemical stock Clean Science Prabhudas Lilladher says that for or the Mid-Cap Specialty chemical stock Clean Science looking ahead, the new capex initiatives are expected to be key growth drivers. Clean Science construction has commenced on a second performance chemical plant focused on water treatment, which is scheduled to be operational by the margin profile as per Prabhudas Lilladher may come under some pressure, as certain new products are expected to have lower profitability compared to the company's legacy portfolio. At its current valuation of 37 times FY27 Earnings per Share, they maintain a 'Hold' rating on Clean Science, with a target price of ₹ 1,361 valuing it at 38 times FY27 EPS B&K Securities however has Buy Ratings for the Mid-Cap Specialty chemical stock Clean Science with a target price of ₹ 1716 B&K Securities analysts say that based on expanded HALS product basket, ongoing scale up, and widening geographical footprint, the company expects to clock 4,500 MT volumes garnering ₹ 210 Crore revenues and capturing 65% of domestic market share in HALS in the coming year. Mid Cap Specialty chemical stock Clean Science two new performance products, slated for commercialization in August-25 and February-26 are also expected to aid FY26E growth while legacy portfolio to grow at around 5-6% YoY in line with the industry growth. B&K Securities expects robust growth in FY27 backed by further scale-up from HALS and the newly introduced two performance products while supported by products such as DHDT, Barbituric Acid, and BHT. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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