Midcap stock in focus after Citi gives a ‘Buy’ rating with 42% upside following Q3 results

Synopsis: The share of 360 ONE WAM Ltd gained 7.2 percent after it announced its third-quarter earnings, leading to two global investment banks reiterating their target for a return of up to 42 percent.

The shares of this company, which is engaged in wealth management and provides services relating to financial products distribution, advisory, and portfolio management services, are in focus after Q3 results.

With a market capitalisation of Rs 48,482 crore, 360 ONE WAM Limited’s shares on Friday made a day high of Rs 1,235.65 per share, up by 7.2 percent from its previous day’s close price of Rs 1,152 per share. The shares have given a return of 349.21 percent in the last five years.

Q3 Result Highlights

QoQ 

The revenue from operations grew by 7.5 percent to Rs 1,181 crore in Q3 FY26, corresponding to the last quarter in the same financial year. EBDIT grew by 4 percent to Rs 725 crore in Q3 FY26 from Rs 697 crore in Q2 FY26. Accompanied by a net profit growth of 3.8 percent to Rs 327 crore in Q3 FY26, resulting in an EPS of Rs 8.08 per share in the same period.

YoY 

The revenue from operations grew by 51 percent to Rs 1,181 crore in Q3 FY26, corresponding to the same quarter in the last financial year. EBDIT grew by 63 percent to Rs 725 crore in Q3 FY26 from Rs 444 crore in Q3 FY25. Accompanied by Net profit growth of 18 percent to Rs 327 crore in Q3 FY26, resulting in an EPS growth of 13 percent to Rs 8.08 per share.

360 ONE delivered a strong Q3 FY26 performance, with total AUM reaching Rs 711,000 crore, supported by healthy net inflows of Rs 14,758 crore. Wealth Management remained the key driver, aided by steady client additions and strong revenue generation across advisory, lending, and capital market services.

Operationally, the firm showed improving efficiency and profitability. ARR AUM grew 28.2 percent year-on-year, profits rose 20.3 percent, and ARR retention stayed strong at 81 bps. With a 21 percent return on tangible equity and controlled costs, the business continues to scale profitably.

Analyst’s comments

Jefferies has reiterated its Buy rating on 360 ONE, setting a target price of Rs 1,410, an upside of 17.8 percent from today’s close. The brokerage highlights strong net inflows, which drove 31 percent year-on-year growth in ARR AUM, reflecting sustained client traction and a healthy business momentum.

Profitability was supported by steady carry income and the expansion of the UHNI relationship manager team. While flows and carry income are expected to normalise, Jefferies remains positive, forecasting a 20 percent CAGR in core profits over FY26 to FY28 on the back of a solid operating platform.

Citi has reiterated its Buy rating on 360 ONE and raised the target price to Rs 1,700, an upside of 42 percent from today’s closing price, reflecting growing confidence in the company’s performance. Strong client flows and robust carry income continued to support earnings momentum, highlighting the strength of its wealth management franchise.

Looking ahead, Citi expects productivity improvements to emerge steadily over time, further supporting profitability. With operating metrics improving and business traction remaining healthy, the brokerage sees significant scope for a re-rating, underpinned by sustained growth visibility and improving return ratios.

IIFL Wealth Management Limited, founded in 2008, is one of the largest private wealth management firms in India. The company mainly acts as a wealth manager and provides services relating to financial products distribution, advisory, and portfolio management services by mobilising funds and assets of various classes of investors, including high-net-worth individuals.

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