360 One Shares Surge After Q4 Profit Beat Estimates, Jefferies Raises Target Price
The asset management company's net profit surged 56.77% year-on-year to Rs 243 crore in the quarter ended March 2024, beating Bloomberg's estimate of Rs 191 crore.
Shares of 360 One Wam Ltd. snapped their three-day fall to surge nearly 14% after its fourth-quarter profit beat analysts' estimates, leading Jefferies to raise the stock's target price.
The asset management company's net profit surged 56.77% year-on-year to Rs 243 crore in the quarter ended March 2024, according to an exchange filing. Analysts polled by Bloomberg estimated the net profit at Rs 191 crore.
360 One Wam (Consolidated, YoY)
Total income up 97.92% at Rs 1,051 crore. (Bloomberg estimate: Rs 477 crore).
Net profit up 56.77% at Rs 243 crore. (Bloomberg estimate: Rs 191 crore).
The board approved the interim dividend of 3.5 per share for the financial year 2024–25.
Jefferies raised its target price for the stock to Rs 930 apiece from Rs 900 apiece earlier, while maintaining a 'buy' on the stock. "We tweak estimates for the slightly better pickup in distribution products that drives a 3% EPS upgrade," the brokerage said.
Citi Research has a positive catalyst watch open for the stock as the company's management has guided 25-30% of recurring flows from new strategies over the medium term following stellar Q4 results.
"Additionally, management expects lagged productivity benefits stemming from geography expansion, bandwidth augmentation and flows from new segments," it said.
Shares of the company rose as much as 13.57% to Rs 870 apiece, the highest level since April 18. It pared gains to trade 6.7% higher at Rs 817.50 apiece as of 9:55 a.m. This compares to a 0.32% advance in the NSE Nifty 50.
The stock has risen 15.3% on a year-to-date basis and 94.93% in the last 12 months. Total traded volume on the NSE so far in the day stood at 3.84 times its 30-day average. The relative strength index was at 71.21, indicating that the stock may be overbought.
All the 10 analysts tracking the company have a 'buy' rating for the stock, according to Bloomberg data. The average 12-month consensus price target implies a upside of 1.6%.