360ONE - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.1
📊 Financial Overview: 360ONE displays a mixed financial profile. While its debt-to-equity ratio of 0.19 is healthy and return metrics (ROE: 10%, ROCE: 11.2%) are stable, the quarterly profit plunged by 78.4%, raising concerns about earnings consistency. The EPS of ₹7.44 is modest, and the dividend yield of 1.07% adds a small income cushion.
💰 Valuation Metrics: The stock appears significantly overvalued with a P/E ratio of 148 compared to the industry average of 17.1. Its P/B ratio is ~6 (₹1,082 / ₹181), and the PEG ratio of -362 reflects negative earnings growth. These indicators suggest the stock is priced far above its intrinsic value.
🏢 Business Model & Competitive Edge: 360ONE operates in wealth and asset management, focusing on fee-based advisory services. It benefits from India’s growing financialization trend and has built digital platforms and alternate investment vehicles. However, its growth lags behind faster-moving peers like Nuvama, and recent profit volatility weakens its competitive edge.
📉 Entry Zone: A reasonable entry zone lies between ₹850–₹950, offering better value closer to the 52-week low of ₹766 and below the DMA 200 of ₹1,060.
📈 Long-Term Holding Guidance: Suitable for long-term investors seeking exposure to India’s wealth management boom, but only at lower valuations. Monitor quarterly earnings and institutional holding trends for signs of recovery.
✅ Positive
- Low debt-to-equity ratio (0.19) supports financial stability
- Stable ROE (10%) and ROCE (11.2%) indicate efficient capital use
- Digital platforms and advisory income offer scalable business model
- DII holdings increased by 2.81%, showing domestic investor confidence
⚠️ Limitation
- Extremely high P/E ratio (148) vs industry average (17.1)
- Negative PEG ratio (-362) signals poor growth outlook
- Quarterly PAT dropped 78.4%, indicating earnings volatility
- FII holdings declined by 2.67%, showing reduced foreign interest
📉 Company Negative News
- Q2 PAT fell sharply from ₹112 Cr to ₹34.3 Cr
- Stock trading below 50 DMA, suggesting short-term weakness
📈 Company Positive News
- Motilal Oswal highlighted 360ONE as a top Diwali pick for AUM growth and profitability
- Positioned to benefit from India’s ₹600-trillion wealth boom and shift to financial products
🏦 Industry
- Wealth management industry growing due to financialization of household assets
- Recurring advisory income becoming dominant revenue model
- Competition intensifying with faster-growing peers like Nuvama
🧾 Conclusion
360ONE is a solid player in a promising industry but currently overvalued. Long-term prospects are attractive if earnings stabilize. Consider entry below ₹950 for better margin of safety. Keep an eye on quarterly performance and institutional flows.
Sources
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