BSE: 532892 | NSE: MOTILALOFS | Finance - Stock Broking | Mid Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Motilal Oswal Financial Services Ltd is a good quality company.
The key valuation ratios of Motilal Oswal Financial Services Ltd's currently when compared to its past seem to suggest it is in the Fair zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Motilal Oswal Financial Services Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation Index Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 11.1% | 8.3% | 8.7% | 25.1% | 13% | 7.9% | 20.3% | 17% | 12.9% | 21.5% | - |
| Value Creation Index ⓘ | -0.2 | -0.4 | -0.4 | 0.9 | 0.0 | -0.4 | 0.5 | 0.3 | 0.0 | 0.9 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 129 | 110 | 132 | 1,355 | 1,282 | 1,111 | 2,198 | 2,579 | 2,666 | 4,540 | 5,955 |
| Sales YoY Gr. | - | -14.4% | 19.6% | 928.6% | -5.4% | -13.3% | 97.9% | 17.3% | 3.4% | 70.3% | - |
| Adj EPS ⓘ | 1.1 | 0.8 | 1.5 | 6.9 | 5.6 | 3.3 | 12.8 | 11.9 | 9.6 | 25 | 32 |
| YoY Gr. | - | -24.1% | 84.2% | 355.6% | -19.3% | -40.2% | 285.5% | -7.4% | -18.8% | 160% | - |
| BVPS (₹) ⓘ | 10.3 | 10.4 | 11.6 | 40.6 | 43.9 | 46 | 60.8 | 70.1 | 73.8 | 97.8 | 126.8 |
| Adj Net Profit ⓘ | 60.5 | 46.8 | 87.5 | 399 | 324 | 197 | 751 | 707 | 569 | 1,490 | 1,916 |
| Cash Flow from Ops. ⓘ | -255 | 286 | -48.7 | 487 | 306 | 784 | -660 | 879 | -1,332 | -493 | - |
| Debt/CF from Ops. ⓘ | -1.7 | 1.4 | -9.4 | 2.6 | 4.6 | 1.8 | -3.2 | 2.5 | -2.8 | -13.7 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 48.6% | 28.8% | 27.4% | 70.3% | ||||
| Adj EPS ⓘ | 41.8% | 35.1% | 25% | 160% | ||||
| BVPSⓘ | 28.5% | 17.4% | 17.2% | 32.5% | ||||
| Share Price | 24.3% | 33.3% | 43.6% | 52.3% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 11 | 8 | 13.9 | 26.4 | 13.2 | 7.5 | 23.9 | 18.3 | 13.3 | 29.2 | 28.5 |
| Op. Profit Mgn % ⓘ | 78 | 81.5 | 96.7 | 46.6 | 42.9 | 28.5 | 50.2 | 39.8 | 36.2 | 49.5 | 52.4 |
| Net Profit Mgn % ⓘ | 47 | 42.4 | 66.4 | 29.4 | 25.3 | 17.7 | 34.2 | 27.4 | 21.3 | 32.8 | 32.2 |
| Debt to Equity ⓘ | 0.8 | 0.7 | 0.7 | 0.5 | 0.6 | 0.5 | 0.6 | 0.5 | 0.9 | 1.2 | - |
| Working Cap Days ⓘ | 1,554 | 1,607 | 982 | 240 | 454 | 493 | 316 | 362 | 379 | 365 | 627 |
| Cash Conv. Cycle ⓘ | 0 | 0 | 0 | -168 | -320 | -429 | -708 | -726 | -698 | -658 | 176 |
Return on Equity has increased versus last 3 years average to 28.50%
Sales growth is growing at healthy rate in last 3 years 27.36%
Net Profit is growing at healthy rate in last 3 years 25.02%
Sales growth is good in last 4 quarters at 73.35%
Debt to equity has increased versus last 3 years average to 1.15
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 32 | 54.9 |
| TTM Sales (₹ Cr.) | 5,955 | 9,229 |
| BVPS (₹.) ⓘ | 126.8 | 194.2 |
| Reserves (₹ Cr.) ⓘ | 7,539 | 11,576 |
| P/BV ⓘ | 5.02 | 3.28 |
| PE ⓘ | 19.92 | 11.60 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 403.25 / 1063.40 |
| All Time Low / High (₹) | 10.90 / 1063.40 |
| Market Cap (₹ Cr.) | 38,167 |
| Equity (₹ Cr.) | 59.9 |
| Face Value (₹) | 1 |
| Industry PE ⓘ | 20.1 |
| Mar'24 | YoY Gr. Rt. % | Jun'24 | YoY Gr. Rt. % | Sep'24 | YoY Gr. Rt. % | Dec'24 | YoY Gr. Rt. % | |
|---|---|---|---|---|---|---|---|---|
| Sales (₹ Cr.)ⓘ | 1,456 | 141.7 | 1,503 | 73.2 | 1,765 | 67.6 | 1,231 | 10.9 |
| Adj EPS (₹) ⓘ | 8.7 | 474.2 | 8.7 | 79.2 | 9.9 | 90 | 4.8 | -24.3 |
| Op. Profit Mgn % ⓘ | 52.97 | 2012 bps | 53.76 | 812 bps | 55.37 | 896 bps | 45.83 | -763 bps |
| Net Profit Mgn % ⓘ | 34.94 | 2058 bps | 34.17 | 170 bps | 33.28 | 442 bps | 23.38 | -1029 bps |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Key Financial Highlights
Segmental Performance
Wealth Management
Asset & Private Wealth Management
Capital Markets (Institutional Equities & Investment Banking)
Housing Finance
Treasury Investments
We initiated a buy position in Motilal Oswal Financial Services (MOFSL) in September 2022 at Rs. 748. The stock has since then more than doubled for our investors. Company fundamentals have also improved significantly within this period, growth is largely attributed to the capital markets segment (>50% of Revenue & Operating profits) which includes broking, distribution, and investment banking. MOFSL reported a strong uptick in cash volumes and improved brokerage performance. Notably, its Futures & Options (F&O) premium market share reached 8.7% in December 2023.
Within Capital Markets, MOFSL has significant exposure to the Margin Trading Funding (MTF) business under which traders take large bets using borrowed funds from NBFCs, using shares as collateral. A recent directive from the RBI to JM Financials, halting its share-backed lending, underscores the regulatory risks in this space. Such a clampdown from RBI or SEBI could adversely impact MOFSL, particularly its MTF business, which contributed a net interest income of Rs. 150 Cr in Q3FY24, and potentially affect overall brokerage volumes.
MOFSL's exposure to the cyclical broking sector, despite its diversified portfolio including asset management, wealth management, and home finance, poses a risk given that more than 50% of its profitability is derived from the capital market segment. The inherent cyclicality of the broking business, coupled with intense competition, should be reflected in its valuation.
Particulars | Q3FY24 (Rs. Cr) | YoY Trend | Comments |
| Revenue | 1,766 | +67% | Capital markets revenue grew 36% YoY and Wealth management grew by 14% YoY |
| EBITDA | 1,088 | +123% | |
| EBITDA Margin | 61% | +1600 bps | Aided by a swing in Treasury Profit to Rs. 348 Cr as against a loss of Rs. 4 Cr in Q3FY23 |
| PAT | 661 | +190% | Aided by higher other income |
On the back of improved performance, MRP has been upgraded to Rs. 1,278.
Particulars | Q2FY24 (Rs. Crs) | YoY Trend | Comments |
| Revenue | 1,055 | +22% | Assets under advice increased to Rs. 4.1 Trillion (+30%). Retail Cash Market Share stood at 7.1% |
| EBITDA | 481 | +12% | |
| EBITDA Margin | 46% | -370 bps | Margin declined due to higher employee costs |
| PAT | 308 | -5% | PAT saw a dip due to higher interest cost |
Good overall results
Revenue grew by 5% YoY to 11.35 Bn in Q4FY23. AUM of Asset Management segment declined by 7.4% YoY, while the AUM of the Wealth Management segment grew by 51% YoY in Q4 FY23. Retail Futures & options (F&O) Average daily turnover (ADTO) witnessed an impressive growth of 162% YoY, F&O market share 3.9%. Home Finance segment reported disbursements of 3.6 Bn, 80% YoY growth in Q4 FY23. PAT at 2.33 Bn in Q4FY23, rose 2% QoQ.
Mixed results with positives on Wealth management and broking front, offsetting outflows from asset management segment.
Motilal Oswal Financial Services Ltd
Market Cap 9,958Cr
CMP 674
P/E 9.3
|
Results |
(INR Cr) |
YoY Growth |
Comments |
|
Revenue |
1,145.5 |
2% |
Muted growth across segments |
|
Net Profit |
226.3 |
-6% |
Due to decline in EBITDA margin to 27.1% for segments other than housing finance |
Key Highlight –
· Broking & Distribution active clients grew by 14% on yearly basis to 9,00,242 and average revenue per user (ARPU) at 23,438 for Q3 FY23.
· Retail Future & Option market share at 4.4%, increase of 0.5% from previous quarter.
· AMC segment asset under management (AUM) declined 8.3% to 46,500 Cr, while Wealth Management AUM increased by 20.8% to 41,300 Cr.
· Housing Finance AUM was flat at 36,900 Cr, while NIM improved by 0.66% to 7.8% for 9M FY23.
Management Outlook –
· Management guided on Relationship Managers (RM) added in last 3 years to contribute to profitability. Also plans to grow RM at 20%.
· Management has positive outlook on housing finance growth for FY 24/25, with better return ratios but elevated operating expenses.
· Management expects digital initiatives to help in market share consolidation.
| Company Name | CMP(₹) | |||||||
|---|---|---|---|---|---|---|---|---|
| Motilal Oswal Fin | 636.9 | 0.6 (0.1%) | Mid Cap | 4,540 | 32 | 32.8 | 19.9 | 5 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | 131 | 111 | 133 | 1,359 | 1,313 | 1,148 | 2,225 | 2,617 | 2,693 | 4,598 |
| Interest Income | 129 | 110 | 132 | 1,355 | 1,282 | 1,111 | 2,198 | 2,579 | 2,666 | 4,540 |
| Other Income ⓘ | 3 | 1 | 1 | 4 | 31 | 37 | 27 | 38 | 27 | 58 |
| Expenditure ⓘ | 66 | 58 | 17 | 853 | 920 | 954 | 1,260 | 1,753 | 1,967 | 2,806 |
| Interest Expense ⓘ | 30 | 30 | 5 | 93 | 104 | 129 | 128 | 162 | 217 | 442 |
| Operating Expenses ⓘ | 25 | 23 | 11 | 730 | 725 | 788 | 1,092 | 1,545 | 1,704 | 2,281 |
| Provisions | 11 | 6 | 1 | 30 | 90 | 37 | 40 | 46 | 46 | 84 |
| Exceptional Items ⓘ | 0 | 0 | -28 | 0 | 0 | 0 | -88 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 65 | 53 | 88 | 506 | 394 | 194 | 876 | 864 | 725 | 1,792 |
| Taxes ⓘ | 5 | 7 | 0 | 107 | 70 | -3 | 126 | 157 | 156 | 302 |
| Profit After Tax | 60 | 47 | 87 | 399 | 324 | 197 | 751 | 707 | 569 | 1,490 |
| Adjusted EPS (₹) | 1.1 | 0.8 | 1.5 | 6.9 | 5.6 | 3.3 | 12.8 | 11.9 | 9.6 | 25.0 |
| Dividend Payout Ratio (%) | 70% | 106% | 41% | 31% | 38% | 30% | 20% | 21% | 26% | 14% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Equity Capital | 575 | 593 | 669 | 2,381 | 2,594 | 2,764 | 3,616 | 4,242 | 4,454 | 5,916 |
| Share Capital ⓘ | 14 | 14 | 14 | 15 | 15 | 15 | 15 | 15 | 15 | 15 |
| Reserves ⓘ | 561 | 579 | 655 | 2,367 | 2,579 | 2,749 | 3,602 | 4,227 | 4,439 | 5,901 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long Term Borrowings | 229 | 187 | 114 | 334 | 305 | 546 | 863 | 1,106 | 920 | 1,061 |
| Current Liabilities | 330 | 318 | 376 | 2,388 | 2,808 | 3,216 | 5,074 | 6,051 | 9,270 | 14,704 |
| Trade Payables | 0 | 0 | 0 | 976 | 1,146 | 1,567 | 2,798 | 3,446 | 3,166 | 5,186 |
| Short term borrowings | 293 | 248 | 258 | 1,060 | 1,220 | 1,280 | 1,779 | 1,793 | 3,691 | 6,697 |
| Other Liabilities | -293 | -248 | -258 | -1,862 | -2,366 | -2,846 | -4,577 | -5,239 | -6,858 | -11,883 |
| Total Liabilities ⓘ | 1,134 | 1,099 | 1,159 | 5,277 | 5,706 | 6,526 | 9,554 | 11,399 | 14,643 | 21,682 |
Assets | ||||||||||
| Non Current Asset | 587 | 718 | 732 | 3,145 | 3,207 | 4,241 | 4,775 | 5,313 | 5,283 | 6,904 |
| Loan Asset | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non Current Asset ⓘ | 587 | 718 | 732 | 3,145 | 3,207 | 4,241 | 4,775 | 5,313 | 5,283 | 6,904 |
| Current Asset | 547 | 381 | 427 | 2,132 | 2,499 | 2,286 | 4,778 | 6,086 | 9,360 | 14,777 |
| Current Investment | 0 | 0 | 80 | 288 | 181 | 237 | 0 | 0 | 0 | 0 |
| Other Current Asset | 547 | 381 | 347 | 1,844 | 2,317 | 2,048 | 4,778 | 6,086 | 9,360 | 14,777 |
| Total Assets ⓘ | 1,134 | 1,099 | 1,159 | 5,277 | 5,706 | 6,526 | 9,554 | 11,399 | 14,643 | 21,682 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | -255 | 286 | -49 | 487 | 306 | 784 | -660 | 879 | -1,332 | -493 |
| Cash Flow From Investing Activity ⓘ | 0 | -90 | -106 | -289 | -100 | -295 | 111 | -357 | 30 | -487 |
| Cash Flow From Financing Activity ⓘ | 260 | -90 | 49 | -181 | -132 | -70 | 443 | -53 | 1,212 | 2,828 |
| Net Cash Flow ⓘ | 4 | 106 | -106 | 17 | 75 | 419 | -106 | 469 | -90 | 1,848 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Operational & Financial Ratios |
||||||||||
| EPS (₹) | 4 | 3 | 6 | 28 | 22 | 13 | 51 | 47 | 38 | 100 |
| DPS (₹) | 3 | 4 | 3 | 9 | 9 | 4 | 10 | 10 | 10 | 14 |
| BVPS (₹) | 41 | 42 | 46 | 162 | 176 | 184 | 243 | 280 | 295 | 391 |
Performance Ratios | ||||||||||
| ROA (%) | 6.4 | 4.2 | 7.8 | 12.4 | 5.9 | 3.2 | 9.3 | 6.8 | 4.4 | 8.2 |
| ROE (%) | 11.0 | 8.0 | 13.9 | 26.4 | 13.2 | 7.5 | 23.9 | 18.3 | 13.3 | 29.2 |
| ROCE (%) | 11.1 | 8.3 | 8.7 | 25.1 | 13.0 | 7.9 | 20.3 | 17.0 | 12.9 | 21.5 |
Valuation Parameters | ||||||||||
| Price/Book(x) | 7.0 | 6.5 | 15.7 | 6.2 | 3.4 | 2.7 | 2.6 | 3.1 | 2.1 | 4.3 |
Motilal Oswal Financial Services Limited is a public limited company and incorporated under the provisions of Companies Act. The Company is registered with Securities and Exchange Board of India (SEBI) under the Stock brokers and sub brokers Regulations, 1992 and is a member of Bombay Stock Exchange Limited, National Stock Exchange of India Limited, Multi Commodity Exchange of India Ltd. and National Commodity and Derivatives Exchange Limited. It is registered with Central Depository Services (India) Limited and National Securities Depository Limited in the capacity of Depository Participant and also registered with SEBI in capacity of Research Analyst and Investment Advisor.
Business area of the company
Motilal Oswal Financial Services offers a range of financial products and services, such as wealth management, retail broking and distribution, institutional broking, asset management, commodity broking, private equity, investment banking, and principal strategies. The company acts as a stock broker and commodities broker to execute proprietary trades and also trades on behalf of its clients which include retail customers (including high net worth individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients.
Services offered by the company
Applications
Investors Platforms
Trader Platform
Awards
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
100% Secure Process
Account Discovery
- OTP from CAMS
Account Linking for Stocks & MF
- One OTP per link Eg. NSDL, CDSL, CAMS, KFin etc.
One Click Upload for your Current Portfolio and Future Transactions!
Don't miss out! First 10 users today get it FREE
With this 4 hrs Masterclass, you’ll be able to:
Download APP
