360ONE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:16 pm

Fundamental Rating: 2.4

📊 Core Financials

• Revenue & Profitability: PAT fell sharply from 112 Cr. to 34.3 Cr. (Qtr Var -78.4%).
• Margins: ROE at 10% and ROCE at 11.2% show modest efficiency.
• Debt: Debt-to-equity ratio of 0.19 indicates low leverage and manageable risk.
• Cash Flow: Dividend yield of 1.05% provides limited but consistent shareholder returns.

💹 Valuation Indicators

• P/E Ratio: 156 vs Industry PE of 20.7 — extremely overvalued.
• P/B Ratio: Current Price 1,139 ₹ vs Book Value 181 ₹ → ~6.3x, expensive.
• PEG Ratio: -381, reflecting poor earnings growth relative to valuation.
• Intrinsic Value: Current valuation far exceeds fundamentals, suggesting overpricing.

🏢 Business Model & Competitive Advantage

• Operates in wealth & asset management, benefiting from India’s expanding financial services sector.
• Strong brand presence and institutional client base.
• Competitive advantage lies in diversified offerings and established trust among HNI/UHNI clients.

📈 Entry Zone & Long-Term Guidance

• Entry Zone: Attractive only near 850–950 ₹ range, closer to long-term DMA and below intrinsic fair value.
• Long-Term Holding: Caution advised — fundamentals weak, valuation stretched. Suitable only for high-risk investors with long horizon.

✅ Positive

• Low debt-to-equity ratio (0.19).
• Strong domestic institutional support with rising DII holdings (+2.81%).
• Stable dividend yield at 1.05%.

⚠️ Limitation

• High P/E (156) and P/B (~6.3x) make the stock expensive.
• Negative PEG ratio highlights poor earnings growth.
• Quarterly profit volatility undermines consistency.

📉 Company Negative News

• Sharp decline in quarterly PAT (-78.4%).
• FII holding reduced by -2.67%, signaling waning foreign confidence.

📈 Company Positive News

• DII holdings increased, showing domestic institutional trust.
• Stock trading above DMA 50 & DMA 200, indicating technical strength.

🌐 Industry

• Financial services industry PE at 20.7, much lower than company’s valuation.
• Sector benefits from India’s rising wealth creation and financial inclusion trends.

🔎 Conclusion

• 360ONE is fundamentally weak at current valuations with declining profitability.
• Overvalued compared to industry peers, making entry risky at current price.
• Best suited for cautious accumulation only at lower levels (850–950 ₹).
• Long-term investors should monitor earnings recovery before committing significant capital.