360ONE - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 2.0
| Stock Code | 360ONE | Market Cap | 47,277 Cr. | Current Price | 1,167 ₹ | High / Low | 1,274 ₹ |
| Stock P/E | 218 | Book Value | 181 ₹ | Dividend Yield | 1.03 % | ROCE | 11.2 % |
| ROE | 10.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,141 ₹ | DMA 200 | 1,099 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.14 % | PAT Qtr | 0.45 Cr. | PAT Prev Qtr | 34.3 Cr. |
| RSI | 55.0 | MACD | -4.18 | Volume | 10,13,910 | Avg Vol 1Wk | 11,18,548 |
| Low price | 766 ₹ | High price | 1,274 ₹ | PEG Ratio | -531 | Debt to equity | 0.19 |
| 52w Index | 79.0 % | Qtr Profit Var | -99.4 % | EPS | 5.42 ₹ | Industry PE | 20.0 |
📊 The stock 360ONE shows signs of overvaluation with a P/E ratio of 218 compared to the industry average of 20. Earnings growth is weak (EPS 5.42 ₹, quarterly profit variance -99.4%), and the PEG ratio is negative (-531), indicating poor growth relative to price. ROE (10%) and ROCE (11.2%) are modest, not strong enough to justify such high valuations. Dividend yield is low at 1.03%. Technicals show the stock trading above its 200 DMA (1,099 ₹), but momentum indicators (MACD negative, RSI neutral at 55) suggest limited upside.
💡 Ideal Entry Price Zone: 900 ₹ – 1,000 ₹, closer to valuation comfort and long-term DMA support. Current price (1,167 ₹) is expensive relative to fundamentals.
📌 Exit Strategy / Holding Period: If already holding, consider partial exit near resistance levels (~1,200 ₹). Long-term investors should only hold if expecting structural earnings recovery. Otherwise, reallocate capital. Holding period should be limited until ROE/ROCE improve and earnings visibility strengthens.
Positive
- Large market capitalization (47,277 Cr.) ensures liquidity.
- Low debt-to-equity ratio (0.19) indicates financial stability.
- Stock trading above 200 DMA shows medium-term technical strength.
Limitation
- Extremely high P/E ratio (218) compared to industry average (20).
- Negative PEG ratio (-531) highlights poor earnings growth.
- Quarterly profit collapsed from 34.3 Cr. to 0.45 Cr. (-99.4%).
Company Negative News
- Sharp decline in quarterly profits raises sustainability concerns.
- FII holding decreased (-0.36%), showing reduced foreign investor confidence.
Company Positive News
- DII holding increased (+0.14%), indicating domestic institutional support.
- Consistent dividend payout with yield of 1.03%.
Industry
- Industry P/E is 20, far below the company’s valuation, suggesting peers are more reasonably priced.
- Wealth management and financial services sector has long-term growth potential in India.
Conclusion
⚠️ 360ONE is currently overvalued with weak earnings visibility. It is not an ideal candidate for long-term investment at current levels. Entry should be considered only around 900–1,000 ₹ for valuation comfort. Existing holders may exit near resistance (~1,200 ₹) unless earnings growth improves significantly.