360 ONE (360ONE)

FairStock Score: 28/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 22.10% and 5-year revenue CAGR of 17.37% show strong compounding.
• Latest quarter net margin of roughly 27.7% (₹327 Cr profit on ₹1,181 Cr sales) is robust.
• ROE of 16.66% and ROCE of 14.91% indicate decent capital efficiency.
• Piotroski F-Score of 7/9 suggests healthy fundamentals, and PEG of 0.43 reflects growth support.

Concerns

• Promoter holding is only 6.25%, creating weak alignment with minority shareholders.
• Free cash flow is deeply negative at -₹3,476 Cr and debt/equity is 1.47, raising financial health risks.
• Valuation is rich: P/E 38.02, P/B 6.04, and price far above the Graham Number of ₹354.95.
• Altman Z-Score of 2.32 and EV/EBITDA of 407.38 indicate elevated stress or unusual capital metrics.

AI Analysis

When I look at 360 ONE, I first ask: do I understand this business? It is stockbroking and allied services, and the growth numbers are impressive—sales up 22.10% and a five-year revenue CAGR of 17.37%. But investing is about price, and at ₹1,052.20, the market cap stands at ₹44,755 crore. That gives a P/E of 38.02 and a P/B of 6.04 against a book value of just ₹174.22. Benjamin Graham would say there is no margin of safety here: the Graham Number is only ₹354.95, meaning the current price is roughly three times that, with a margin of safety of -210.92%. For a business like this, I need a discount, not a premium. The operating quality has some positives. Return on equity is 16.66%, the Piotroski score of 7/9 is respectable, and the latest quarter shows net profit of ₹327 crore on sales of ₹1,181 crore—a strong margin. But the financial health is not clean: debt/equity is 1.47, free cash flow is deeply negative at -₹3,476 crore, and the Altman Z-Score of 2.32 puts the company in a grey zone. EV/EBITDA of 407.38 is almost impossible to justify on a conventional basis. Promoter holding of only 6.25% is a major red flag. When the stewards of capital own so little, minority shareholders are left exposed. A dividend yield of 1.09% offers little solace while waiting. No matter how good the growth story seems, price is the first test. At this valuation, I do not see a Buffett-style margin of safety. I would wait on the sidelines.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer